Stablecoin

Long

Coin

<p>Ripple Labs has received a significant regulatory green light, as the New York Department of Financial Services (NYDFS) has officially approved the launch of Ripple’s stablecoin, RLUSD. The approval marks a major milestone for the company and its entry into the growing stablecoin market.&nbsp;</p>
<p>Ripple’s CEO, Brad Garlinghouse, <a href="https://x.com/bgarlinghouse/status/1866571228464460215">made the announcement</a> in a tweet on December 10, confirming that the stablecoin would soon be available on several exchanges and through various partnerships.</p>
<div>
 <blockquote class="twitter-tweet">
  <p lang="en" dir="ltr">This just in…we have final approval from <a href="https://twitter.com/NYDFS?ref_src=twsrc%5Etfw">@NYDFS</a> for <a href="https://twitter.com/search?q=%24RLUSD&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$RLUSD</a>! Exchange and partner listings will be live soon – and reminder: when RLUSD is live, you’ll hear it from <a href="https://twitter.com/Ripple?ref_src=twsrc%5Etfw">@Ripple</a> first.</p>— Brad Garlinghouse (@bgarlinghouse) <a href="https://twitter.com/bgarlinghouse/status/1866571228464460215?ref_src=twsrc%5Etfw">December 10, 2024</a>
 </blockquote> 
</div>
<h2 id="ripple-s-ambitious-stablecoin-plans">Ripple’s Ambitious Stablecoin Plans</h2>
<p>Ripple first revealed its plans for RLUSD in April, aiming to create a regulated, US dollar-backed stablecoin to compete with leading players like Tether's USDT and USD Coin (USDC) from Circle. Ripple executives have expressed confidence that the RLUSD could capture a large portion of the market, with projections suggesting it could reach a market capitalization of $2 trillion by 2028.</p>
<p>The stablecoin has been in beta testing since August, running on both the XRP Ledger and Ethereum blockchains. This dual-chain approach allows RLUSD to be compatible with a wide range of wallets, decentralized finance (DeFi) applications, and cryptocurrency exchanges. Ripple’s focus on institutional use cases, as stated by Garlinghouse, indicates that RLUSD will be geared toward enterprise adoption.</p>
<h3 id="key-features-of-rlusd">Key Features of RLUSD</h3>
<p>RLUSD is a stablecoin pegged 1:1 to the U.S. dollar, ensuring stability and minimizing volatility. The coin is fully backed by U.S. dollar deposits, short-term U.S. government Treasuries, and other cash equivalents. Per reports, Ripple’s decision to back the token with highly regulated, low-risk assets is a key differentiator from other stablecoins in the market.</p>
<p>In addition to being pegged to the U.S. dollar, RLUSD’s issuance on two major blockchains—XRP Ledger and Ethereum—boosts its adaptability and usage across various platforms. It is issued as an ERC-20 token on Ethereum, making it easily compatible with Ethereum-based decentralized apps (dApps) and exchanges.&nbsp;</p>
<h2 id="ripple-s-strategic-expansion">Ripple's Strategic Expansion</h2>
<p>Ripple’s decision to launch RLUSD comes at a time when the stablecoin market is seeing rapid growth. The combined market capitalization of Tether (USDT) and USD Coin (USDC) stands at roughly $180 billion, with stablecoins playing an increasingly vital role in the crypto economy. Ripple’s entry into this space aims to tap into a market forecasted to grow into the trillions of dollars in the coming years.</p>
<p>Ripple President Monica Long emphasized in an interview with <i>CoinDesk</i> that the RLUSD stablecoin is designed to serve as a bridge for traditional financial instruments to be tokenized on the blockchain. Tokenization, which involves converting physical or traditional assets into digital tokens, is one of the hottest trends in the crypto industry. Ripple is looking to position RLUSD as a cornerstone in the broader trend of real-world asset tokenization, enabling more efficient and secure financial transactions.</p>
<p>The RLUSD stablecoin launch has also had a positive impact on the broader XRP market. Ripple’s XRP surged by <a href="https://coinmarketcap.com/currencies/xrp/">around 300%</a> over the last 30 days. This rise was fueled by a combination of factors, including growing optimism about Ripple's expanding product suite, the RLUSD launch, and ongoing legal developments in Ripple’s ongoing litigation with the U.S. Securities and Exchange Commission (SEC).</p>

Ripple's RLUSD Stablecoin Receives NYDFS Approval, Launch Imminent

Table of Contents

BSCN

Other articles published on Dec 12, 2024

SHIB on Track to Hit $0.000081 Plus 180%, SHIB Team Believes

Solana Bulls Eye 1650% Surge Following Key Pattern Formation

DogeReaper Vulnerability Brings Dogecoin Network to Its Knees

Floki Launches Crypto Debit Card in 31 European Countries with Mastercard Partnership

“Hawk Tuah” Girl’s $HAWK Memecoin Faces Backlash After Allegations of Insider Trading and Sniping

Major scientific journal Nature features DeSci project ResearchHub

Join our free newsletter for daily crypto updates!