$XRP Ripple’s Stablecoin Will Challenge Tether and Circle’s Dominance

Ripple first announced plans for RLUSD in April, positioning it as a competitor to Tether’s USDT and Circle’s USDC. In August, Ripple began testing the stablecoin on the XRP Ledger and Ethereum mainnet.

In October, the company revealed partnerships with major exchanges, including Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish. Ripple executives projected RLUSD could reach a market cap of $2 trillion by 2028.

BeInCrypto previously reported that the NYDFS was on track to approve Ripple’s stablecoin in the first week of December. However, delays in regulatory scrutiny raised concerns that approval might not come before Christmas.

So today’s approval came as a surprise to the market, and the price of XRP responded quickly. XRP surged nearly 10% within an hour of the NYDFS announcement. Earlier in the day, the token briefly dipped below $2.

Donald Trump’s re-election in November has fueled renewed optimism among the XRP community. Last month, current SEC Chairman Gary Gensler announced his resignation, having been a staunch critic of Ripple.

Under Gensler’s direction, Ripple has faced a lengthy legal battle with the SEC. However, these regulatory challenges are likely to ease, as Trump recently appointed pro-crypto candidate Paul Atkins.

Additionally, Ripple reported significant growth in Q3, driven by higher transaction volumes on the XRP Ledger and increased institutional interest in its XRP token.

During Q3, the Chicago Mercantile Exchange (CME) introduced an XRP reference price, while Bitnomial revealed plans to launch an XRP futures product. Other financial institutions, including Bitwise, Canary Capital, WisdomTree, and 21Shares, have filed applications for XRP ETFs.#XRPnews $XRP