Ripple secures NYDFS approval for its stablecoin RLUSD

New York's Department of Financial Services (NYDFS) approves Ripple's stablecoin, RLUSD.

This just in…we have final approval from @NYDFS for $RLUSD! Exchange and partner listings will be live soon – and reminder: when RLUSD is live, you’ll hear it from @Ripple first.

— Brad Garlinghouse (@bgarlinghouse) December 10, 2024

According to CEO Brad Garlinghouse, the New York State Department of Financial Services has confirmed the final approval of the RLUSD stablecoin. Ripple hopes to improve its cross-border payment solutions by utilizing both RLUSD and XRP with the launch of RLUSD.

RLUSD stablecoin approval confirmed by NYDFS

Garlinghouse wrote on X on Tuesday, "This just in...we have final approval from the New York State Department of Financial Services for RLUSD." "Exchange and partner listings will be live soon."

The stablecoin, which will mainly target big institutional players, is prepared to be listed on significant cryptocurrency exchanges in the near future, added Garlinghouse.

Approval of RLUSD prompts XRP to increase by 6%

Ripple's native token, XRP, continued its recent momentum by jumping 6% in response to the news of RLUSD's approval. XRP is now the fourth most valuable cryptocurrency asset after a 400% increase since the US elections, overtaking Solana. 

RLUSD expected to launch by end of 2024

David Schwartz, the CTO of Ripple, expressed his hope that RLUSD could launch by the end of the year during his remarks at The Block's Emergence conference in Prague last week. In April, Ripple announced its plan to introduce a stablecoin, which would first be accessible on Ethereum and Ledger.

In August, the company began testing RLUSD. With market markers B2C2 and Keyrock to support its liquidity, Ripple then announced in October that Uphold, Bitstamp, CoinMENA, Bitso, Independent Reserve, MoonPay, and Bullish would be its exchange partners for the launch of the RLUSD. After testing on the Ethereum and XRP Ledger networks earlier this year, the coin is now preparing for its launch on Ripple's partner platforms.

What is RLUSD?

Similar to Tether's backing structure, RLUSD, a stablecoin backed 1:1 by the US dollar, will be supported by US dollar deposits, short-term US government treasuries, and other cash equivalents. The aim of RLUSD is to directly challenge Circle's USDC dominance by breaking into the US market. As of the time of writing, USDC has a $40 billion market capitalization, making it the second-largest stablecoin after Tether.

At the moment, one of the most popular cryptocurrency tokens is Ripple. With the pro-crypto regime occupying the US political sphere, the token is bustling. XRP has benefited from Donald Trump's ability to appoint a new SEC chair, which is a testament to his seriousness about the cryptocurrency space. Under Gary Gensler's direction, the US SEC and Ripple were involved in a contentious legal dispute. Ripple investors are hoping for a hopeful end to this chaos as the president-elect Trump tenure approaches, allowing the token to trade freely on all fronts. 

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