The post XRP News Today: Ripple’s RLUSD Stablecoin Gets NYDFS Approval appeared first on Coinpedia Fintech News
Ripple News Today: After months of speculation, Ripple’s U.S. dollar-backed stablecoin, RLUSD, has received final regulatory approval from the New York Department of Financial Services (NYDFS). This milestone marks a major achievement for Ripple. The announcement, shared by Ripple CEO Brad Garlinghouse on X, sparked a 10% surge in XRP, Ripple’s native token. The approval paves the way for RLUSD to go live on exchanges and partner platforms, signaling Ripple’s expansion into the stablecoin market.
RLUSD: Ripple’s Big Bet on Stablecoins
RLUSD is currently in beta testing on the Ethereum network and XRP Ledger (XRPL), with a circulating supply of $52 million. This stablecoin is pegged to short-term U.S. government bonds and aims to tap into the rapidly growing stablecoin market, which is currently dominated by Tether (USDT) and Circle (USDC). Ripple’s entry into this market is part of its strategy to become a leader in institutional payments and real-world asset tokenization.
Stablecoins Current Market Position
The stablecoin market, valued at nearly $200 billion, is expected to grow exponentially in the coming years. Ripple plans to leverage RLUSD to expand its role in global payments while providing a bridge for traditional financial assets to operate on blockchain networks. Tokenization, the process of converting physical assets into digital tokens for faster and more efficient transactions, is a key focus for Ripple. RLUSD is positioned as a major player in this trend.
Will it Send XRP Price to ATH?
Vincent Van Code, a crypto expert broke down the buzz around Ripple’s RLUSD and XRP in simple terms. He pointed out that while XRP’s recent jump from $1.90 to $2.35 is exciting, it’s mostly driven by speculation, not real-world usage just yet. The real game-changer will come when Ripple sets up automated market makers (AMMs) and liquidity pools (LPs), offering up to 5% annual returns on-chain without any counterparty risk.
He explained how this could attract serious funds to the XRPL, with exchanges getting in on the action by offering RLUSD staking. This would lock up more XRP, driving up demand. Plus, users may start swapping USDT for RLUSD and move these funds to their self-custody wallets. From there, they can use RLUSD to buy XRP or invest in LP tokens to earn even better returns—creating a feedback loop that raises XRP demand even further.
In short, this isn’t just about today’s price pump; it’s about setting the stage for sustained growth. Van Code predicts RLUSD could double XRP demand and potentially shake up the market by February 2025.
However the present scenario is quite alarming, the crypto market is taking a big hit, with XRP dropping 12% to $2.07. This sharp fall reflects a tough day for many cryptocurrencies, as prices tumble across the board. Despite recent good news for Ripple, like its stablecoin approval, the market’s volatility shows no signs of slowing down.
When Will RLUSD Launch ?
The RLUSD stablecoin by Ripple is expected to launch by the end of 2024, following its recent regulatory approval from the New York Department of Financial Services (NYDFS).
Is the Federal Reserve Going to Use XRP?
The Federal Reserve has not officially adopted XRP, but Ripple’s involvement in the FedNow real-time payment system has fueled speculation about its future role
