Important points
Ripple has received final approval from NYDFS for its RLUSD stablecoin, an important regulatory milestone. RLUSD is backed by U.S. dollar deposits, short-term U.S. Treasury securities, and other cash equivalents.
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Ripple has received final approval for its stablecoin RLUSD from the New York Department of Financial Services, as confirmed by Ripple CEO Brad Garlinghouse.
This has just received final approval from… @NYDFS for $RLUSD! The list of exchanges and partners will be published soon – and a reminder: Once RLUSD is published, you will receive the following message: @ripple beginning.
— Brad Garlinghouse (@bgarlinghouse) December 10, 2024
In a post about X, Garlinghouse announced:
“We have now received final approval for $RLUSD from NYDFS!”
RLUSD is designed as a 1:1 USD-backed stablecoin and will be backed by USD deposits, short-term U.S. Treasuries, and other cash equivalents, similar to Tether's backing structure.
RLUSD aims to penetrate the US market and directly challenge Circle's USDC dominance.
At the time of writing, USDC is the second largest stablecoin after Tether, with a market capitalization of $40 billion.
According to Ripple CEO Brad Garlinghouse, the stablecoin is primarily targeted at large institutional investors and will soon be ready to be listed on major crypto exchanges.
Earlier this year, the coin underwent testing on the XRP Ledger and Ethereum networks and is currently preparing for launch on Ripple's partner platforms.
The launch of RLUSD comes amid a significant rise in Ripple's native token, XRP.
Since the US election, it has increased by 400%, surpassing Solana to become the fourth most valuable crypto asset.
With the introduction of RLUSD, Ripple aims to leverage both RLUSD and XRP to power its cross-border payment solutions.
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