Ripple’s RLUSD stablecoin has now received approval from the New York State Department of Financial Services (NYDFS). This is quite a big win for Ripple as the dollar-pegged token now complies with one of the most rigid rules in the United States. The stablecoin is expected to be launched on major cryptocurrency exchanges in the near future.
Ripple CEO Brad Garlinghouse revealed the approval and stated that partner listings would go live “ soon.” This announcement cements Ripple’s position in the growing stablecoin market, with the company continuing to stress compliance and adoption.
This just in…we have final approval from @NYDFS for $RLUSD! Exchange and partner listings will be live soon – and reminder: when RLUSD is live, you’ll hear it from @Ripple first.
— Brad Garlinghouse (@bgarlinghouse) December 10, 2024
The recent regulatory clearance will allow extensive listings of the stablecoin on major exchanges. Ripple recently partnered with Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish. Notably, the company started RLUSD testing on the XRP Ledger and Ethereum mainnets in August.
RLUSD will be a 1:1 US dollar-backed stablecoin and will hold its reserves in the US dollar, short-term US government treasuries, and other cash equivalents.
Similar to Tether, Ripple has a structure that is based on backing. The firm believes that RLUSD will pose a threat to USDC, the second largest stablecoin after Tether, with a market capitalization of about $40 billion. Ripple’s CEO, Brad Garlinghouse, recently appeared on the 60 Minutes show, where he explained how the cryptocurrency industry could impact the 2024 US elections.
Cardano’s partnership with RLUSD
The RLUSD launch happens at a time when XRP, the native token of Ripple, is on the rise. Since the 2024 US elections, the price of XRP has surged by 400%, placing it as the fourth most valuable cryptocurrency asset ahead of Solana. Additionally, in the last month, XRP has risen by 200%.
Recently, Charles Hoskinson, the founder of Cardano, said he has been in talks with Ripple CEO Brad Garlinghouse and CTO David Schwartz. He stated that he is interested in bringing Ripple’s RLUSD stablecoin into the Cardano community.
Hoskinson plans to integrate RLUSD into Midnight, a privacy-focused sidechain of Cardano. Midnight uses two tokens, NIGHT for transactions and DUST for governance and staking. Hoskinson sees RLUSD as a proxy for this new asset class on Midnight and as an additional currency to XRP.
Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap
