Ripple, a leading cryptocurrency company, is facing ongoing regulatory challenges in the United States that have delayed the launch of its new stablecoin Ripple-USD (RLUSD).
After announcing its intention in April, the company cited regulatory restrictions and a lack of necessary approvals in the United States as the reason behind the launch being delayed several times.
The company's CEO, Brad Garlinghouse, highlighted this ongoing challenge, repeatedly noting that a lack of regulatory clarity has slowed the pace of progress.
Despite the company's attempts to comply with regulations, including its acquisition of Standard Custody to strengthen its regulatory position, key approvals from regulators, such as the New York Department of Financial Services (NYDFS), have yet to be granted.
Heading to Japan:
As a result of these regulatory challenges in the US, Ripple has begun to set its sights on Japan, which has a clearer and more flexible regulatory system for cryptocurrencies.
Recently, the Japanese Financial Services Agency has issued favorable regulations for stablecoins, making Japan an attractive option for Ripple’s expansion strategies.
During Garlinghouse’s recent visit to Tokyo, he met with senior Japanese officials, including Tairamasaki, and came away optimistic about Ripple’s potential to take advantage of Japan’s advanced regulatory environment to launch RLUSD.
RLUSD is expected to enter the stablecoin market directly against major stablecoins such as Tether’s USDT and Circle’s USDC.
By integrating with Ledger's XRP and the Ethereum blockchain, Ripple seeks to leverage its existing infrastructure to enter the massive market for stablecoins pegged to the US dollar, estimated at around $170 billion.
This move is seen as an advanced strategy by Ripple to seize the opportunity of rapid growth in this growing market.
