The long-awaited approval for RLUSD from the New York State Department of Financial Services has been granted according to Ripple’s CEO, Brad Garlinghouse. This means that the stablecoin can now be launched across multiple exchanges for easy accessibility.
Ripple Set to Launch RLUSD
In a post on X (formerly Twitter), Garlinghouse disclosed that his company has received permission from the regulatory body and the coin would soon be launched. Moreover, he emphasized that the exchanges and partner platforms where RLUSD would be listed will be communicated with the public shortly.
This came as a welcome development for the XRP community who has been eagerly waiting for updates regarding the venture.
Ripple announced its plan, in April, to enter the over $208 billion stablecoin market dominated by big players like Tether USDT, and Circle’s USDC.
In August, the company launched the coin in private Beta mode, testing it among selected enterprise partners to ensure proper functionality before the final launch. During the time, Ripple minted and burned tens of millions of the stablecoin, a move aimed at creating scarcity.
As a reminder, Ripple and Garlinghouse urged the community to remain vigilant and only look to official channels for further announcements including the official launch date.
$RLUSD is launching soon!Stay vigilant and report any impersonations or scams. https://t.co/yqnAdBQSfW
— Ripple (@Ripple) December 10, 2024
The Role of RLUSD in the Market
The stablecoin market has experienced tremendous growth over the years. In fact, its valuation is projected to grow above $3 trillion in the coming years. With RLUSD, Ripple has quickly positioned itself as a key player in the field, with the potential to enjoy a sizeable share of the market.
Ripple noted that RLUSD would be utilized for cross-border transactions, allowing global businesses to transfer funds seamlessly at a very low cost. Moreover, the coin also allows easy conversion between cryptocurrencies and fiat currencies.
What is more, the stablecoin will serve as collateral for RWA (real-world assets) to support business and trading activities, and also to improve liquidity in the overall crypto market.
What this Means for XRP
Following the approval announcement by Garlinghouse, XRP jumped immediately by 8%, trading above $2.4 for a short time before retracing to its current price of $2.3. Notably, the coin is still up by 4.5% in the last 24 hours.
Source: CoinMarketCap
The sharp spike signals the influence RLUSD has on the future trajectory of XRP. Though the rally was short-lived, it was a testament to what is to come upon the final public launch of the asset.
Analysts have predicted several price ranges for XRP moving forward, with most suggesting that XRP might close the year with a new all-time high of $4.5. While these are still based on speculations, it is yet to be confirmed how XRP will react when RLUSD eventually goes live.
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