According to a report by Fox Business, New York's top cryptocurrency regulator, the Department of Financial Services (NYDFS), is set to approve the issuance of a new stablecoin RLUSD by cross-border payments company Ripple. The token XRP, associated with Ripple Labs, surged 17% in 24 hours, surpassing BNB to become the fifth largest cryptocurrency by market capitalization.
Is RLUSD about to be licensed?
Ripple CEO Brad Garlinghouse announced in April the company's entry into the stablecoin market with a stablecoin named RLUSD, which is fully backed by USD deposits, short-term U.S. government treasury bills, and other equivalent cash. It is planned to be issued this year based on the ERC-20 token standard and will support transactions on Ripple's XRP distributed ledger and Ethereum.
Ripple states that it is committed to regulatory compliance, holding a New York BitLicense, remittance licenses in nearly 40 U.S. states, a Major Payment Institution license (MPI) from the Monetary Authority of Singapore (MAS), and being registered as a Virtual Asset Service Provider with the Central Bank of Ireland. This year, Ripple also agreed to acquire Standard Custody, one of the few crypto companies holding a New York charter trust.
Fox Business cited sources reporting that the New York Department of Financial Services (NYDFS) has indicated to Ripple that it will approve the product, with the company eyeing a possible launch date of December 4. RLUSD is set to position itself as a major player in New York's regulated digital financial market and the broader stablecoin ecosystem.
XRP surpasses BNB to become the fifth largest cryptocurrency by market capitalization
Ripple's core business revolves around its decentralized global payment network RippleNet, utilizing blockchain technology to provide faster, cheaper, and more efficient cross-border payment solutions for banks and businesses. It is marketed as an alternative to the global banking settlement system SWIFT. Ripple's native token XRP acts as a bridge currency for settling these transactions, but the token currently faces regulatory challenges in the U.S. as the Securities and Exchange Commission continues to argue in court that it is an unregistered security.
However, with Trump confirming his return to the White House and SEC Chairman Gary Gensler announcing he would resign in January, XRP surged 245% over the month, jumping 17% yesterday after the news broke, surpassing BNB to become the fifth largest cryptocurrency by market capitalization.
This article: Has Ripple's stablecoin RLUSD been approved by the New York Department of Financial Services? XRP's market cap surpasses BNB first appeared on Chain News ABMedia.
