Ripple CEO Brad Garlinghouse promised to make an official announcement about the launch after RLUSD becomes available on exchanges. The price of Ripple's XRP surged by 8% on Wednesday after the NYDFS, the primary regulator of the cryptocurrency market in New York, granted final approval for the launch of the RLUSD stablecoin.
This approval allows Ripple to publicly launch RLUSD, positioning it as a key player in New York's regulated digital finance market and expanding its role in the global stablecoin ecosystem.
Most recently, XRP rose by 8.3% to $2.33, and has increased by 70% over the past two weeks.
Ripple CEO Brad Garlinghouse announced the approval in his X post on Tuesday evening, adding that Ripple will officially announce the launch of RLUSD as soon as it becomes available on exchanges.
The approval of Ripple RLUSD marks a strategic shift towards a regulated stablecoin market
Initially, Ripple planned to launch the project on December 4, but the company did not receive final approval in time.
RLUSD represents a strategic shift to offer clients a stable, regulated digital asset, reducing exposure to XRP's volatility and regulatory issues. This approval positions Ripple in direct competition with leading US stablecoin issuers such as Circle, Paxos, and Gemini, which operate under strict New York regulations. NYDFS, known for its high standards, ensures compliance with rigorous rules regarding transparency, safety, and consumer protection.
Ripple developed RLUSD to maintain a peg to the US dollar at a 1:1 ratio. The stablecoin operates on the XRP Ledger and Ethereum blockchains, ensuring compatibility with existing financial systems and enhancing the efficiency of digital transactions. By offering RLUSD alongside XRP, Ripple aims to strengthen its remittance and settlement services.
Analyst: RLUSD could enhance the utility, liquidity, and price growth of XRP
Ryan Li, chief analyst at Bitget Research, stated that the introduction of Ripple RLUSD could significantly enhance the utility and liquidity of XRP.
“By increasing transaction volumes and demand for XRP, RLUSD could play a key role in supporting price growth. Furthermore, the ongoing adoption of Ripple for cross-border payments continues to bolster market sentiment,” he said.
“Looking ahead to 2025, XRP price forecasts vary widely, with an average prediction ranging from $1.8 to $8.4, and some optimistic scenarios suggesting peaks above $10. This forecast relies on broader adoption and resolution of regulatory barriers. The adoption of RLUSD as a key transaction tool could further strengthen the role of XRP in the financial ecosystem.”
“Nevertheless, broader trends in the cryptocurrency market, particularly the dynamics of Bitcoin, remain significant factors influencing the price trajectory of XRP.”
