Ripple’s RLUSD Stablecoin Receives NYDFS Approval, XRP Jumps 10%
Ripple’s stablecoin initiative took a significant step forward on Tuesday, as the company announced it received regulatory approval for its RLUSD token from the New York Department of Financial Services (NYDFS). The news sent XRP, the native cryptocurrency of the XRP Ledger, climbing 10% during U.S. afternoon trading, surpassing earlier losses and leading the broader market rally.
Ripple CEO Brad Garlinghouse confirmed the approval on X, writing, “We have final approval from NYDFS for RLUSD! Exchange and partner listings are coming soon.” This approval marks a crucial milestone for Ripple’s ambitions in the stablecoin sector, which continues to expand globally.
Ripple’s Strategic Move into Stablecoins
Ripple’s RLUSD stablecoin is backed by short-term U.S. government bonds, ensuring its stability in line with regulatory requirements. Stablecoins like RLUSD are integral to the growing crypto economy, providing reliable digital assets for transactions and global payments. Tether (USDT) and Circle (USDC) currently dominate the $200 billion stablecoin market, but Ripple’s new offering is positioning itself for a slice of the market expected to reach trillions in the coming years.
Monica Long, President of Ripple, discussed the tokenization potential of RLUSD, which aims to streamline traditional finance with blockchain technology. The stablecoin will play a key role in Ripple’s goal of enhancing cross-border payments and facilitating tokenization of real-world assets, a trend gaining momentum in the crypto industry.
RLUSD Testing on Ethereum and XRP Ledger
RLUSD has been undergoing beta testing on both the XRP Ledger and Ethereum networks, with Ripple’s leadership confirming that the token has been “operationally ready” while awaiting regulatory clearance. Currently, RLUSD tokens are circulating in testing phases, with $41.7 million on Ethereum and $10.4 million on the XRP Ledger, according to data from CryptoQuant.
With regulatory approval now secured, Ripple is poised to launch RLUSD to the public, providing another innovative solution in the ever-expanding world of decentralized finance and stablecoins.
