Originally published on: November 29, 2024
Ripple Labs is on the brink of getting approval from the New York Department of Financial Services (NYDFS) for its RLUSD stablecoin, an overcollateralized dollar-pegged stablecoin. According to sources cited by Fox Business, the green light from the New York financial regulator is expected in the coming days, paving the way for the product to launch as early as December 4.
The announcement of the RLUSD stablecoin initially created uncertainty among XRP holders, sparking concerns that Ripple Labs might shift its focus away from the XRP token in favor of its new stablecoin for cross-border liquidity solutions. However, the company has not confirmed any plans to abandon XRP.
Ripple Labs unveiled its plans to develop the RLUSD stablecoin back in April 2024 as a direct competitor to established stablecoins like USD Coin (USDC) and Tether (USDT). Ripple executives have high hopes for the stablecoin market, predicting a market capitalization of $2 trillion by 2028 and emphasizing the potential for multiple stablecoin issuers to thrive in the industry.
In preparation for the RLUSD stablecoin launch, Ripple Labs has been testing the stablecoin on the XRP Ledger and the Ethereum mainnet. The company also intends to expand the stablecoin to other blockchain platforms in the future.
To ensure transparency and compliance, Ripple Labs has committed to conducting regular third-party audits of the assets backing the RLUSD stablecoin and providing monthly reports on the collateral reserves. The company has also partnered with several exchanges to facilitate the trading of RLUSD, including Uphold, Bitstamp, Bitso, and others.
Ripple’s co-founder and CEO, Brad Garlinghouse, has reaffirmed the company’s dedication to enhancing liquidity for RLUSD using existing products like XRP. Ripple Labs remains focused on regulatory compliance, operating under its New York Trust Company Charter.
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