New York Regulatory Approves Ripple Stablecoin RLUSD, As XRP Surges 10%

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As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous transformations and evolutions in the digital asset space. The recent approval by the New York Department of Financial Services (NYDFS) for Ripple‘s RLUSD stablecoin is indeed an exciting development that has the potential to shake up the existing landscape dominated by Tether’s USDT and Circle’s USDC.

Ripple Labs has obtained approval from the New York Department of Financial Services (NYDFS) for their RLUSD digital currency, also known as a stablecoin.

On December 10th, CEO Brad Garlinghouse verified the project’s progression. He also mentioned that they plan to reveal details about the cryptocurrency’s upcoming exchange and partnership listings in the near future.

Ripple Stablecoin To Challenge Tether and Circle’s Dominance

Initially, Ripple unveiled intentions for RLUSD back in April, presenting it as a rival to Tether’s USDT and Circle’s USDC. By August, they started trial runs of this stablecoin on the XRP Ledger and Ethereum networks.

In October, it was announced that the company had formed alliances with significant exchanges such as Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish. Ripple’s leaders anticipate that RLUSD could reach a market capitalization of $2 trillion by 2028.

As a crypto investor, I’m thrilled to share some exciting news: We’ve secured the final approval for RLUSD from NYDFS! Soon, you’ll find us listed on various exchanges and partner platforms. Keep in mind that when RLUSD goes live, it will be announced first by none other than Ripple, so stay tuned for updates directly from Brad Garlinghouse, the CEO of Ripple, on his platform (now known as X).

According to an earlier report by BeInCrypto, it appeared that the New York Department of Financial Services (NYDFS) was planning to approve Ripple’s stablecoin around the first week of December. Yet, due to delays in regulatory reviews, there were growing worries that the approval might not be granted before Christmas.

Today’s approval came as an unexpected shock to the market, causing XRP’s value to react swiftly. Immediately following the NYDFS declaration, XRP saw a surge of nearly 10% within an hour. Earlier in the day, the token had momentarily dropped below $2.

The prospect of Donald Trump’s re-election in November has sparked new hope within the XRP community. In the previous month, Gary Gensler, the current SEC chair who has been critical of Ripple, announced his resignation. Under Gensler’s leadership, Ripple has faced a prolonged legal battle with the SEC. However, these regulatory hurdles may lessen as Trump recently selected Paul Atkins, a pro-cryptocurrency candidate, to replace him.

Moreover, it was announced that Ripple experienced substantial expansion during Q3, driven by increased transactions on the XRP Ledger and a surge of institutional demand for their XRP token.

In the third quarter, the Chicago Mercantile Exchange (CME) started using a reference price for XRP, while Bitnomial announced their intention to launch an XRP futures contract. Additionally, financial entities such as Bitwise, Canary Capital, WisdomTree, and 21Shares submitted applications for exchange-traded funds (ETFs) based on XRP.

Grayscale has introduced an XRP Trust and started working towards transforming their Digital Major Cap Fund (which consists of Bitcoin, Ethereum, Solana, XRP, and Avalanche) into a Exchange-Traded Fund (ETF).

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2024-12-11 01:08