Ripple Labs Secures NYDFS Approval for RLUSD Stablecoin, Bolstering XRP Prices

Ripple Labs has secured a huge win with its RLUSD stablecoin, gaining approval from the New York Department of Financial Services (NYDFS).

Cryptocurrency firm Ripple Labs has secured a major win with the approval of its RLUSD stablecoin by the New York Department of Financial Services (NYDFS). The milestone achievement, announced by Ripple CEO Brad Garlinghouse, comes after months of speculation and marks a critical juncture in the company’s journey.

“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,” said Garlinghouse.

This just in…we have final approval from @NYDFS for $RLUSD!

Exchange and partner listings (like @Uphold, @Bitstamp, @Bitso, @MoonPay, @IndependentRes, @CoinMENA, and @Bullish) will be live soon

— and reminder:

when RLUSD is live, you’ll hear it from @Ripple first.

With the approval, Ripple can now tap into the lucrative New York market and further strengthen trust among institutions and investors. The state’s stringent crypto regulations and oversight are designed to protect consumers and ensure the integrity of the financial system.

This achievement also solidifies Ripple's credibility as a compliance-first entity, a strategy that has been central to the company’s vision.

As highlighted by crypto analyst Vincent Van Code, RLUSD stands out from the crowd against the likes of USDT and USDC. The robust regulatory framework that Ripple has put in place for its stablecoin is evident. It aligns with four major U.S. financial regulations, including US GAAP, Basel III, the Dodd-Frank Act, and FDIC and Federal Reserve Rules, making it one of the most transparent and tightly knit stablecoins available.

RLUSD is fully backed by U.S. Treasury bonds and onshore assets, ensuring financial stability and adherence to stringent accounting standards. The stablecoin’s value is pegged to the U.S. dollar and is designed to maintain a 1:1 ratio.

Unlike competitors, RLUSD’s adherence to Generally Accepted Accounting Principles (GAAP) ensures the stablecoin’s ability to withstand impairment tests. This key distinction sets it apart in the market.

Furthermore, Ripple has embraced Basel III, a set of global banking rules established post-2007 financial crisis. These measures enhance RLUSD’s risk management and liquidity, making it safer for users.

The assets backing the stablecoin are also securely stored in regulated institutions, meeting FDIC and Federal Reserve guidelines.

By aligning with the Dodd-Frank Act, Ripple ensures operational transparency for RLUSD. Introduced after the financial crisis, this regulation safeguards consumers and promotes clarity in financial markets, further boosting investor confidence in the stablecoin.

The buzz surrounding RLUSD has had a positive impact on XRP, Ripple’s native cryptocurrency. Following the announcement, XRP surged 23%, climbing from $2.03 to a high of $2.40, despite a recent dip in the last week.

This surge in XRP can be attributed to investor optimism about Ripple’s forward momentum. While the stablecoin’s launch won’t directly affect XRP, positive sentiment around Ripple's innovations often lifts the token.

Investors view Ripple’s regulatory wins as a reflection of its credibility, which translates into heightened interest in XRP.

Although the exact date for RLUSD’s debut is still up in the air, Ripple plans to make the stablecoin accessible on prominent global platforms. This includes Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish.

This widespread availability at launch will see Ripple attempt to redefine stablecoins globally, setting a new standard for compliance and stability in the crypto landscape.

As RLUSD prepares to hit the markets, its robust framework could make it a game-changer in the stablecoin space, leaving competitors like USDT and USDC scrambling to keep up.