As per the latest report, Ripple is on the verge of receiving approval from the New York Department of Financial Services (NYDFS) to launch its stablecoin, RLUSD. Sources indicate that the company is planning to launch on Dec 4, 2024.
This move would position the company as a big player in New York’s regulated digital finance sectors and the broader stablecoin market. The launch will also help Ripple Labs to sustain the company in a regulated market along with its XRP.
Ripple’s stablecoin will provide a steady alternative to XRP, its native cryptocurrency, which remains in controversies with the U.S. Securities and Exchange Commission (SEC). The SEC contends that XRP is an unregistered security, a case currently in the appeals phase.
Despite the legal uncertainty, XRP’s price recently surged to $1.75 after its remarkable victory against the SEC. The rally in cryptocurrency also sparked after Donald Trump’s victory in the presidential election of 2024.
The introduction of RLUSD positions Ripple to compete with established U.S. stablecoin players like Circle’s USDC. Ripple also has plans to collaborate with payment providers such as Bitstamp, Moonpay, and Uphold for RLUSD’s launch.
However, the stablecoin approval process involves stringent NYDFS requirements, focusing on transparency, security, and consumer protection. Ripple is expected to obtain a limited-purpose trust charter, a common route for crypto firms operating in New York.
This would allow the company to offer regulated services without the complexities of traditional banking oversight. Other stablecoin issuers like Paxos and Gemini also operate under similar NYDFS regulations.
Also Read: RLUSD Launch Sparks Buzz Around Hedera Collaboration!