Ripple CEO Brad Garlinghouse announced on Tuesday that New York State regulators have officially approved the company’s first stablecoin, RLUSD. The New York State Department of Financial Services (NYSDFS) granted this certification, marking a significant milestone for Ripple as it ventures into the stablecoin market.
Ripple aims to make RLUSD a dependable digital currency option for clients, minimizing the price swings commonly associated with XRP, its flagship asset. This move is part of Ripple’s strategy to expand its services and adapt to New York’s strict regulatory environment. To do so, the company is expected to secure a limited-purpose trust charter, allowing it to offer specific digital asset services without facing the challenges posed by traditional banking regulations.
Additionally, Ripple will need a BitLicense, which enables crypto platforms like Coinbase and Robinhood to provide trading and custody services in the state. This approval places Ripple alongside other regulated stablecoin providers such as Paxos (PAX) and Gemini (GUSD). Keith Grossman, president of Enterprise at MoonPay, voiced support for Ripple’s market entry, highlighting the importance of well-regulated companies in reshaping global finance.
Garlinghouse also shared that details about RLUSD’s launch, exchange listings, and partnerships will be announced soon, ensuring the public is updated directly by Ripple.
In a recent CBS “60 Minutes” interview, Garlinghouse emphasized the need for clear regulatory guidelines to preserve U.S. leadership in the crypto sector. He argued that uncertainty in regulations could drive the industry to countries with weaker oversight. Ripple has consistently advocated for transparent rules, urging policymakers to establish a balanced framework.
The Ripple CEO also touched on the political landscape, mentioning President-elect Donald Trump’s evolving views on Bitcoin. Garlinghouse humorously noted that voters were aware of potential conflicts of interest when electing him. He also praised bipartisan efforts in Congress, particularly the Fit 21 bill, which proposes transferring some regulatory responsibilities from the SEC to the CFTC. This legislation aims to ease the regulatory challenges faced by crypto businesses.
Regarding the ongoing lawsuit over XRP’s classification as a security, Garlinghouse confidently stated that he does not believe XRP meets the definition of a security, dismissing the allegations as baseless. Ripple’s victory in securing stablecoin approval marks a crucial step forward in its mission to innovate responsibly in the evolving crypto space.
