Ripple Set to Launch RLUSD Stablecoin Amid Regulatory Challenges and Market Volatility

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Ripple Set to Launch RLUSD Stablecoin Amid Regulatory Challenges and Market Volatility

David McNickel1 Dec 2024
Ripple Labs is on the cusp of launching its regulated stablecoin, RLUSD, with New York Department of Financial Services (NYDFS) approval anticipated as early as December 4, 2024.
This development signals Ripple’s strategic entry into the highly regulated U.S. stablecoin market, but questions linger over its flagship token, XRP.
Ripple has developed the RLUSD stablecoin to present a dependable substitute for XRP, which has experienced high volatility and regulatory scrutiny. Ongoing legal disputes with the U.S. Securities and Exchange Commission (SEC), which claims that XRP is an unregistered security, have caused the token’s value to vary considerably. The dispute is still pending, even though Ripple won a partial victory earlier this year, which makes XRP’s future even more dubious.
Unlike XRP, RLUSD will be pegged to the U.S. dollar, offering stability for cross-border transactions. This positions RLUSD as a safer option for institutional clients seeking to minimize exposure to market swings and regulatory ambiguity.
