Obtaining strict New York licensing, $RLUSD compliance greatly increased
Ripple’s stablecoin $RLUSD has finally been officially approved by the New York State Department of Financial Services (NYDFS). The news was announced by Ripple CEO Brad Garlinghouse through the social platform on December 11. This stablecoin has attracted much attention since its plans were made public in April this year. Obtaining a license under New York's strict regulatory framework not only means that RLUSD's regulatory compliance has been taken to a higher level, but also paves the way for its listing on mainstream exchanges. the way.
Source: X Ripple CEO Brad Garlinghouse announced that the stablecoin $RLUSD has been officially approved by the New York State Department of Financial Services (NYDFS)
$RLUSD is pegged to the U.S. dollar at a ratio of 1:1, and the reserves are highly liquid assets such as the U.S. dollar and U.S. short-term Treasury bonds, which shows that Ripple attaches great importance to the safety and stability of funds. In the past, New York had extremely strict requirements for encryption companies to provide services, and they had to obtain a BitLicense or a limited purpose trust company license. $RLUSD’s passing this time means that it can legally operate in the most stringent financial market with the highest compliance standards.
Market competition is fierce, $RLUSD plans to challenge the $USDT and $USDC landscape
The current stablecoin market is highly concentrated, led by the two giants Tether ($USDT) and Circle ($USDC), with a combined market value of approximately US$140 billion. Other new entrants, such as $PYUSD launched by PayPal, even though it was endorsed by the international payment giant, still saw its market value shrink by 50% after its launch, highlighting the difficulty of competition among new stablecoins.
However, $RLUSD’s strategy may be different. Ripple has previously revealed that in addition to having a stable financial foundation and payment customer base, the company also plans to create a market niche through attractive incentive programs, expanding multiple blockchain networks, and taking the lead in deeply exploring inter-institutional payment applications. . Market news shows that $RLUSD has been tested on the XRP Ledger and Ethereum mainnets, and the current circulating volume is said to be distributed on the two chains, totaling more than tens of millions of dollars. By establishing cooperation with Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, Bullish and other exchanges and payment platforms, $RLUSD’s next step is likely to be large-scale listings.
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$XRP rises strongly, $RLUSD assists ecological development
Not only is $RLUSD successfully approved, but Ripple has also achieved great results in terms of regulations and market layout in recent months. The recent surge in the market value of $XRP has become the focus of the market. Coupled with reports that the chairman of the U.S. Securities and Exchange Commission (SEC) will step down and a pro-encryption candidate will be appointed, the outside world expects Ripple to have a smoother compliance process in the United States.
In this context, the launch of $RLUSD is regarded as a big step for Ripple to lay out the global payment map. Stablecoins are an indispensable infrastructure in the cryptocurrency ecosystem and are widely used in transactions, payments, cross-border transfers and decentralized finance (DeFi) protocols. Ripple President Monica Long has previously stated that $RLUSD hopes to become an intermediary for institutional-grade payment solutions while playing a key role in the future wave of tokenization of physical assets.
Through $RLUSD, Ripple will be able to strengthen its existing enterprise-level customer network and allow more traditional financial institutions to enter the decentralized market. Although the market is still waiting to see the competitive prospects of new stablecoins, after obtaining the NYDFS license, $RLUSD has stood on a higher starting line and embarked on the next stage to challenge the existing stablecoin structure and expand the territory of mainstream exchanges.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
"XRP jumped 10%! Ripple’s stablecoin RLUSD has been officially approved, what’s the next step? 』This article was first published in "CryptoCity"
