Ripple (XRP) Labs’ RLUSD Stablecoin Expected to Get NYDFS Approval in the Coming Days

The New York Department of Financial Services (NYDFS) is expected to approve Ripple Labs’ RLUSD stablecoin — an overcollateralized dollar-pegged stablecoin — in the coming days, sources revealed to Fox Business.

New York regulators are set to approve Ripple Labs’ RLUSD stablecoin imminently, multiple sources have told Fox Business.

The green light from the New York Department of Financial Services (NYDFS) will pave the way for a Dec. 4 launch of the dollar-pegged stablecoin, according to the Nov. 29 Fox Business report. In August, Ripple Labs stated the following about the future of its ecosystem:

When the stablecoin was announced, fears spread among XRP XRP $1.81 holders that the company would abandon the token to focus on its new stablecoin product for cross-border liquidity. But Ripple Labs has not confirmed any such pivot.

Continue reading Ripple, Archax debut first tokenized money market fund on XRP Ledger

The inside story on Ripple's RLUSD stablecoin

Ripple announced plans to create the RLUSD stablecoin in April 2024 to compete with USD Coin USDC $0.9996 and Tether USDT $1.00 .

Ripple executives predicted the stablecoin market will reach $2 trillion by 2028, suggesting there is ample space for multiple stablecoin issuers to claim a slice of the multi-trillion-dollar pie.

In August, Ripple began testing the RLUSD stablecoin on the XRP Ledger and the Ethereum mainnet, announcing plans to expand the stablecoin to other blockchains at a later, undisclosed date.

Ripple Labs also pledged to conduct regular third-party audits of the underlying cash and short-term cash equivalents backing the stablecoin, and to provide monthly reports on the collateral reserves.

In October, Ripple announced exchange partners for RLUSD, including Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish.

At the time, Ripple co-founder and CEO Brad Garlinghouse highlighted the company's intention to use its existing products like XRP to enhance liquidity for RLUSD and enable faster settlement times for the stablecoin. The company also noted its focus on complying with regulators under its New York Trust Company Charter.

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