Ripple stablecoin RLUSD expected to launch soon
Ripple is getting ready to launch its stablecoin pegged to the US dollar. According to reports, Ripple Lab's new stablecoin, Ripple USD (RLUSD), is expected to be approved by the New York Department of Financial Services (NYDFS) and could be launched by December 4. The launch is eagerly awaited by the cryptocurrency community.
Ripple’s RLUSD stablecoin launch
Ripple Labs will be able to lawfully offer RLUSD, an overcollateralized dollar-pegged stablecoin, after obtaining the approval. In the absence of an official announcement verifying the launch, the blockchain company has warned against tokens posing as Ripple USD or RLUSD.
In April, Ripple made its initial announcement about launching RLUSD. Ripple purchased Standard Custody & Trust Company in June. Once the stablecoin is approved by the NYDFS, Standard Custody, which already holds a license from the NYDFS to provide crypto custodial services, will take over as the issuer of RLUSD. Ripple began beta testing RLUSD on the Ethereum mainnet and XRP Ledger in August. Plans to extend the stablecoin to additional blockchains were also announced at the time by the company.
Ripple partners with cryptocurrency exchanges
Ripple announced in October that it has teamed up with leading exchanges to enable users to access RLUSD. These consist of Bullish, CoinMENA, Independent Reserve, MoonPay, Bitstamp, Bitso, and Uphold. CoinGecko and CoinMarketCap, two of the biggest cryptocurrency data providers, have already shown preview listings for RLUSD.
The best course of action for companies wishing to offer stablecoins is to operate under state-level regulation, as there are currently no federal stablecoin regulations. Ripple can introduce RLUSD through the BitLicense, which enables cryptocurrency exchanges to facilitate trading and custody of cryptocurrency, or by acquiring a limited purpose trust charter similar to Paxos and Gemini.
Ripple plans to incorporate both RLUSD and XRP
According to the company's announcement regarding RLUSD's beta testing, Ripple intends to use both RLUSD and XRP in its cross-border payments solution once it becomes available in order to serve its customers globally.
Monica Long, the president of Ripple, stated in June that RLUSD was designed to be "complementary and additive" to XRP. Meanwhile, Ripple's RLUSD will establish itself as a reliable substitute that is less volatile than XRP. Although XRP's significant availability on exchanges will contribute to RLUSD's increased liquidity, pairing will also keep the stablecoin's price steady to avoid depegging.
Ripple plans to release monthly reports and carry out frequent, outside audits of the reserves supporting RLUSD.
Ripple Vs SEC
As Ripple fights the U.S. Securities and Exchange Commission (SEC) to demonstrate that XRP is not an unregistered security, the RLUSD launch is scheduled to take place at the same time. It is anticipated that when SEC chair Gary Gensler resigns and Donald Trump takes over as president of the United States in January 2025, the case, which is presently in the Second Circuit's appeals phase, might be dropped.
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