Ripple is on the verge of launching the regulated RLUSD stablecoin, with approval from the New York Department of Financial Services (NYDFS) expected to be completed soon.
According to reports from FOX Business, the company has temporarily planned a launch on December 4. This will be an important step in Ripple's expansion into the tightly regulated digital financial space in New York.
Ripple's Stablecoin Could Provide a Regulated Entry into the U.S. Cryptocurrency Market
Ripple's entry into the stablecoin market puts it in direct competition with established issuers in the U.S. like Circle, Paxos, and Gemini.
If approved, it would allow Ripple to offer RLUSD as a stable and regulated digital currency alternative to XRP. This could attract customers looking to avoid volatility and regulatory challenges associated with other cryptocurrencies.
Meanwhile, New York remains an important market for stablecoin issuers. The state maintains a regulatory framework for these assets. NYDFS imposes strict requirements, including standards for transparency, security, and consumer protection.
"XRP, over 1,000 times faster and 1,000 times cheaper than Bitcoin, when combined with Ripple's upcoming RLUSD Stablecoin, a tool that our U.S. Department of the Treasury recently views as an important liquidity product backed by U.S. Treasury bills, America and the world escape chaos and economic destruction," Rob Cunningham wrote on X (formerly Twitter).
Many companies like Ripple often seek limited-purpose trust licenses to provide digital asset services without facing the broad oversight that traditional banks encounter. Meanwhile, other companies like Coinbase and Robinhood operate under New York's BitLicense regulation to facilitate cryptocurrency trading and custody.
Similarly, Ripple's stablecoin launch will include partners such as Bitstamp, Moonpay, and Uphold. This will ensure broad accessibility for users when the product hits the market.
"RLUSD will only be available on XRPLedger and will not be multi-chain. It is intended for settlement at the banking level and will compete with USDT/USDC in cross-border payments," influencer Martin Folb wrote on X (formerly Twitter).
The Growth of the XRP Market Reflects Increasing Optimism
Ripple's XRP token has recently surpassed BNB to become the fifth-largest cryptocurrency by market capitalization. This morning, the altcoin crossed $100 billion for the first time in over three years.
Overall, November has seen the value of XRP increase by over 230%. This is primarily driven by heightened investor confidence and ongoing bullish momentum across the market.
XRP Price Performance Throughout November 2024. Source: TinTucBitcoin
The resignation of SEC Chairman Gary Gensler earlier this month has contributed to a positive sentiment surrounding Ripple. Gensler's departure has sparked speculation that Ripple may see regulatory pressure from the SEC ease, which the agency had previously often targeted at the company.
Institutional interest in XRP is also rising. Last week, WisdomTree filed to launch an XRP ETF in Delaware. This is the third application following similar filings from Bitwise and Canary Capital in October.
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