Ripple Labs is preparing to introduce its new stablecoin, Ripple USD (RLUSD), with regulatory approval from the New York Department of Financial Services (NYDFS). According to a report by Fox Business, the stablecoin is expected to go live by Dec. 4, pending approval. RLUSD will be an overcollateralized, dollar-pegged stablecoin, offering a more stable alternative in the cryptocurrency market.
The launch comes as Ripple continues its legal battle with the U.S. Securities and Exchange Commission (SEC), which argues that XRP is an unregistered security. The case is currently in the appeals stage in the Second Circuit Court. However, the lawsuit could potentially be dismissed if SEC Chair Gary Gensler steps down and the political landscape shifts with Donald Trump’s anticipated presidency in January.
While federal regulations for stablecoins remain absent, Ripple’s decision to pursue state-level oversight through NYDFS positions the company to legally offer RLUSD. Ripple can either secure a limited-purpose trust charter, similar to Paxos and Gemini, or operate under a BitLicense, which would allow trading and custodial services for RLUSD.
Ripple first unveiled its plans for RLUSD in April and solidified its regulatory strategy by acquiring Standard Custody & Trust Company in June. Standard Custody already holds a license from NYDFS to provide crypto custodial services and will serve as the issuer of RLUSD once the stablecoin is approved.
Beta testing for RLUSD began in August on both the XRP Ledger and Ethereum networks. Ripple also plans to expand the stablecoin to other blockchains. Additionally, in October, Ripple announced partnerships with major exchanges, including Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish, to make RLUSD accessible to users.
To maintain transparency, Ripple will conduct regular audits of RLUSD’s reserves through third-party firms and publish monthly reports on its findings.