Ripple (XRP) Secures NYDFS Approval for RLUSD Stablecoin, Targeting $2 Trillion Market Cap by 2028

Ripple Labs has secured regulatory approval from the New York Department of Financial Services (NYDFS) for its highly anticipated RLUSD stablecoin, marking a milestone for the blockchain company as it strengthens its hold in the competitive stablecoin market.

Ripple Labs has secured regulatory approval from the New York Department of Financial Services (NYDFS) for its highly anticipated RLUSD stablecoin, marking a milestone for the blockchain company as it strengthens its hold in the competitive stablecoin market.

Fresh stablecoins are constantly being launched, along with traditional cryptos that are more volatile in nature. When crypto enthusiasts explore the latest coin launches on Coinbase, they’ll be able to spot all new listings, like RLUSD and other stablecoins, as they launch.

The news was announced by Ripple’s CEO, Brad Garlinghouse, on December 10, following months of scrutiny by the NYDFS.

Ripple is now preparing to roll out RLUSD on major cryptocurrency exchanges, with partnerships and infrastructure already in place to aid with the launch.

RLUSD, pegged 1:1 to the US dollar, is designed to compete with established stablecoins like Tether (USDT) and Circle’s USD Coin (USDC). Backed by USD deposits, short-term US Treasury bonds, and other cash-equivalent reserves, RLUSD wants to provide a secure, scalable, and efficient solution for international payments.

Ripple executives have high expectations for the stablecoin, predicting a market capitalization of $2 trillion by 2028.

The road to NYDFS approval began when the stablecoin was initially announced in April 2024. Ripple’s vision was to position RLUSD as a transformative coin in traditional finance and decentralized finance systems.

Testing for RLUSD began in August on the XRP Ledger and Ethereum mainnets.

By October, Ripple announced partnerships with several prominent exchanges, including Uphold, Bitso, MoonPay, Bitstamp, CoinMENA, Independent Reserve, and Bullish. These collaborations will ensure RLUSD’s smooth integration and liquidity support from market makers like Keyrock and B2C2.

Ripple is committed to adhering to industry standards, which is evident in their fight for NYDFS approval, especially in a market where compliance is a critical differentiator from competitors.

This regulatory greenlight also improves Ripple’s reputation as a trusted blockchain company, which will pave the way for US financial institutions to integrate RLUSD into their operations.

Garlinghouse emphasized this point, stating that the stablecoin’s approval is not only a win for Ripple but also an opportunity to offer secure and scalable cross-border payment solutions to institutional clients.

Ripple’s stablecoin is going to address several challenges in the global payment landscape. By using blockchain technology, RLUSD promises faster transaction speeds and reduced costs compared to traditional payment networks.

This stablecoin is expected to play an important role in tokenizing real-world assets, a growing trend in traditional and decentralized finance.

The stablecoin market is currently valued at approximately $200 billion, with Tether and USD Coin dominating the sector. However, Ripple is optimistic about RLUSD’s potential to get a significant share of the market, especially among institutional players.

The company’s focus on regulatory compliance and strategic partnerships early on sets RLUSD apart from top competitors, and it might just reach its projected market cap of $.28 trillion.

Ripple is preparing for RLUSD’s launch but the company is also engaged in other high-profile activities. Garlinghouse recently appeared on a 60 Minutes segment to discuss the role of cryptocurrencies in shaping the 2024 US Elections.

Ripple is also continuing its battle with the US Securities and Exchange Commission (SEC) over the classification of XRP tokens. Despite these challenges, the company’s progress with RLUSD shows how determined it is to expand in the cryptocurrency space.

The stablecoin is going to be introduced on the major blockchain networks Ethereum and XRP Ledger. However, there are also hints that RLUSD may expand to the Tron blockchain, a possibility suggested by Justin Sun, Founder of Tron.

This strategy that spans several networks is going to increase RLUSD’s accessibility, and therefore its adoption, which will increase its potential as a versatile financial tool.

Thanks to Ripple’s partnerships, RLUSD will be available globally thorough several platforms and exchanges once it launches. This international availability matches Ripple’s goal to create borderless digital assets that facilitate transitions between fiat and cryptocurrencies.

RLUSD’s liquidity will likely be bolstered by market makers who are expected to drive adoption through competitive pricing and trading volumes.

The stablecoin ecosystem has become very competitive, with new entrants like Ethena’s USDe and PayPal’s PYUSD introducing innovative features to gain market share. For example, Ethena has attracted attention with a 27% annual percentage yield on its stablecoin.

Ripple’s RLUSD will have to differentiate itself from this market through institutional focus, regulatory compliance, and industry backing.

Ripple has already minted more than 13 million units of RLUSD following NYDFS approval,