Originally published on: November 29, 2024
The New York Department of Financial Services (NYDFS) is on the brink of granting approval for Ripple Labs’ RLUSD stablecoin, a dollar-pegged stablecoin with overcollateralization. Inside sources have disclosed to Fox Business that the regulatory nod is imminent.
A recent report from Fox Business suggests that the green light from New York’s financial watchdog could pave the way for the launch of the dollar-pegged stablecoin as early as December 4th. Ripple Labs had previously hinted at the direction of its ecosystem in a statement issued back in August.
The announcement of the RLUSD stablecoin had initially sparked concerns among XRP holders about the company’s priorities shifting away from the token towards this new stablecoin venture aimed at enhancing cross-border liquidity. However, Ripple Labs has not yet confirmed any shift in focus.
Ripple’s journey towards developing the RLUSD stablecoin began in April 2024, positioning itself to compete in the stablecoin arena dominated by the likes of USD Coin and Tether. The company’s vision includes a forecasted stablecoin market capitalization of $2 trillion by 2028, highlighting the room for multiple players in this burgeoning space.
Testing for the RLUSD stablecoin on the XRP Ledger and Ethereum mainnet kickstarted in August, with plans for expansion to other blockchains in the pipeline. Ripple Labs has pledged to uphold transparency through regular third-party audits of the collateral reserves supporting the stablecoin, along with monthly reports on the same.
In a bid to strengthen its exchange partnerships, Ripple announced collaborations with Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish in October. Ripple’s CEO Brad Garlinghouse reiterated the company’s commitment to leveraging its product suite, including XRP, to boost liquidity and expedite settlement processes for RLUSD. Compliance with regulatory standards under the New York Trust Company Charter remains a key focus for the company.
With the approval of the RLUSD stablecoin on the horizon, Ripple Labs is poised to make a significant mark in the stablecoin realm, offering investors and users a new avenue for engaging with digital assets in a fast-evolving financial landscape. Stay tuned for more updates on this revolutionary development.