Ripple is reportedly on the brink of securing approval from the New York Department of Financial Services (NYDFS) to launch its RLUSD stablecoin, according to insider sources cited by Fox Business. This milestone could position Ripple as a key player in the booming $200 billion stablecoin market, which is currently led by Tether's USDT and Circle's USDC.
The RLUSD stablecoin will be issued through Standard Custody & Trust Company, a Ripple-owned entity already licensed by NYDFS. The rollout is anticipated as early as December 4, 2024.
Why This Matters
Stablecoins are integral to the cryptocurrency ecosystem, offering price stability for payments, trading, and cross-border transactions. Their use has surged in 2024, driven by increasing crypto adoption and institutional interest. Ripple’s entry could bring new competition to the space, alongside players like PayPal and Robinhood, who recently launched their own stablecoins.
Varun Paul, senior director at Fireblocks, highlighted the rapid growth, stating that "stablecoins now account for over half of platform trading volume."
Ripple’s Strategic Move
Ripple’s RLUSD marks a significant diversification for the company, complementing its XRP token, which facilitates cross-border payments. Despite XRP’s ongoing regulatory challenges with the U.S. SEC, the token recently achieved a six-year high of $1.95, signaling strong market confidence.
This development could cement Ripple’s role in reshaping digital finance, particularly as stablecoins gain traction in global payments and institutional transactions.
