Ripple (XRP) Announces the Launch of Its Long-Awaited RLUSD Stablecoin

The announcement, made on 10 December 2024 confirms that listings for the stablecoin on exchanges and partner platforms are expected to go live shortly.

Ripple Labs has obtained final approval from the New York State Department of Financial Services (NYDFS) for its application to issue the RLUSD stablecoin.

The announcement, made on 10 December 2024, confirms that listings for the stablecoin on exchanges and partner platforms are expected to go live shortly.

RLUSD is pegged to the US dollar at a 1:1 ratio and will be backed by a combination of US dollar deposits, short-term Treasury bonds, and other cash equivalents.

Ripple initially announced RLUSD as a competitor to major stablecoins such as Tether’s USDT and Circle’s USDC.

Testing for the token began in August on the XRP Ledger and Ethereum mainnets following an announcement in April.

By October, Ripple had secured partnerships with several exchanges, including Uphold, Bitstamp, and Bitso, as well as liquidity providers like B2C2 and Keyrock, to support the stablecoin’s rollout.

The NYDFS approval process experienced some delays, with Ripple initially anticipating a decision by 4 December 2024.

Despite this, Ripple’s CEO emphasised the company’s commitment to New York’s strict cryptocurrency regulatory framework, which requires firms to obtain either a BitLicense or a limited-purpose trust company charter to operate in the state.

At the time of writing, the stablecoin market is valued at USD 192.8 billion, with Tether accounting for USD 141 billion of that total.

Other competitors, such as PayPal’s PYUSD and Ethena’s USDe, are employing growth strategies like incentive programs.

Ethena’s USDe has gained traction with a market cap of USD 5.6 billion, supported by a 27% annual percentage yield.

Ripple’s announcement comes in the context of wider company activity.

Company officials recently appeared on a national television program to discuss the impact of cryptocurrency on the US elections.

Additionally, the company continues its legal battle with the US Securities and Exchange Commission (SEC) over the classification of XRP token offerings.