RLUSD, the USD-pegged stablecoin launched by Ripple, has “officially” received approval from the New York State Department of Financial Services (NYDFS), the blockchain firm’s CEO, Brad Garlinghouse, confirmed on social media platform X (formerly Twitter).
He further highlighted that the “exchange and partner listings [for the stablecoin] will be live soon.” The stablecoin was launched in partnership with crypto exchanges, including Uphold, Bitstamp, and Bitso.
A Jump in $XRP Prices
The confirmation of the licence also brought optimism among crypto investors and pushed the price of the XRP token up by about 21 per cent from the $1.9 bottom it reached in the past 24 hours. The cryptocurrency is now trading above $2.3, gaining approximately 7.4 per cent over the same period.
XRP price movement in the last 24 hours; Source: Coinmarketcap.com
XRP has also risen significantly over the last month but lost about 10 per cent of its value in the past week. Meanwhile, Bitcoin’s long positions witnessed $416 million in liquidations recently.
What Is RLUSD?
Ripple launched RLUSD last October in partnership with leading crypto exchanges and financial institutions. The stablecoin is designed to support cross-border payments and will be available to users worldwide.
Unlike regular cryptocurrencies, which are highly volatile, stablecoins are pegged to real-world assets, making them much more ‘stable.’
As Ripple has explained, one use case of RLUSD will be facilitating transactions across international borders, enabling businesses to transfer capital efficiently. The token also acts as a bridge between fiat currencies and crypto assets, allowing businesses and individuals to convert between the two.
Additionally, the stablecoin will support trading and serve as collateral for real-world assets such as commodities and securities, enhancing liquidity and transparency in digital asset markets.