Ripple (XRP) Prepares to Launch Regulated Stablecoin RLUSD, Targeting New York Market

Ripple is on the brink of launching its regulated stablecoin, RLUSD, with approval from the New York Department of Financial Services (NYDFS) expected soon.

Ripple is set to launch its New York-approved stablecoin, RLUSD, on December 4, according to FOX Business reports. This will mark Ripple’s entry into the US stablecoin market, placing it in direct competition with established issuers like Circle, Paxos, and Gemini.

If approved by the New York Department of Financial Services (NYDFS), Ripple will be able to offer RLUSD as a stable and regulated digital currency alternative to XRP. This could appeal to customers looking to avoid the volatility and regulatory challenges associated with other cryptocurrencies.

New York is a critical market for stablecoin issuers, with the state having a dedicated regulatory framework for these assets. The NYDFS imposes stringent requirements, including transparency, security, and consumer protection standards.

“XRP, 1,000 times faster and 1,000 times cheaper than Bitcoin, when paired with Ripple’s soon to be released RLUSD Stablecoin, a tool our US Treasury recently deemed a vital liquidity product backed by US Treasury Bills, America and the world dodges economic chaos & destruction,” Rob Cunningham wrote on X (formerly Twitter).

Companies like Ripple typically pursue limited-purpose trust charters to offer digital asset services without the extensive oversight faced by traditional banks. Others, such as Coinbase and Robinhood, operate under New York’s BitLicense to facilitate crypto trading and custody services.

Ripple’s stablecoin launch will also involve partnerships with payment providers like Bitstamp, Moonpay, and Uphold, ensuring broad accessibility for users once the product goes live.

“RLUSD will only be on XRP Ledger and won’t be multichain. It is intended for bank office institutional settlement and will compete with USDT/USDC for cross-border payments,” influencer Martin Folb wrote on X (formerly Twitter).

In other news, Ripple’s XRP token recently surpassed BNB to become the fifth-largest cryptocurrency by market capitalization. Earlier today, the altcoin crossed $100 billion for the first time in over three years.

XRP’s market value has surged by over 230% in November, driven by increasing investor confidence and the broader bullish momentum in the crypto market. The resignation of SEC Chair Gary Gensler also contributed to the positive sentiment, with some speculating that Ripple could face reduced regulatory pressure from the SEC.

Finally, institutional interest in XRP is also on the rise, with WisdomTree filing an application for an XRP ETF in Delaware last week. This marks the third such application, following similar filings by Bitwise and Canary Capital in October.