The XRP token experienced an increase of almost 7% after Ripple CEO Brad Garlinghouse announced that their company had received approval from the New York Department of Financial Services (NYDFS) regarding the launch of their stablecoin, RLUSD.

RLUSD itself is a stablecoin designed to be equivalent or 1:1 to the United States dollar, just like other popular stablecoins, namely USDT and USDC. The stablecoin was rumored to be launched a week ago, but the official announcement was only issued by Garlinghouse after approval from NYSDF and RLUSD was signaled to be live soon.

Ripple also claims that short-term government cash and other equivalent cash in the form of real US dollar deposits will support RLUSD. In addition, liquidity will also be supported by market makers B2C2 and Keyrock which aim to ensure the availability and efficiency of the stablecoin in the market.

RLUSD itself was first announced in April, then conducted beta testing on the XRP Ledger and the Ethereum blockchain in August. Then, exchange partners for the launch of RLUSD were also announced, including Uphold, Bitstamp, Bitso, Moonpay, Independent Reserve, CoinMENA, and Bullish.

Also read: XRP, ADA, and DOGE Drop, Sentiment Still Bullish

The Impact of RLUSD on XRP

As previously written, Garlinghouse's announcement caused XRP to increase by around 7% and managed to get out of the decline that had occurred for more than a week. This decline was also followed by liquidations of more than IDR 794.8 billion in the last 24 hours, according to data from Coinglass.

At the time of writing, XRP had increased by almost 10% and touched a price of IDR 37 thousand, according to CoinMarketCap data. If XRP can maintain this good trend, the token could reach a price of IDR 41 thousand and retest the resistance level at IDR 47 thousand, a level that was previously a major selling point.