XRP Soars 10% as Ripple's RLUSD Stablecoin Receives NYDFS Approval

XRP, the native token of the XRP Ledger (XRPL), soared 10% on Tuesday following Ripple CEO Brad Garlinghouse's announcement that the company's U.S. dollar-backed stablecoin, RLUSD, received regulatory approval from the New York Department of Financial Services (NYDFS).

XRP price soared by 10% on Tuesday after Ripple CEO Brad Garlinghouse announced that the company’s U.S. dollar-backed stablecoin, RLUSD, has finally received regulatory approval from the New York Department of Financial Services (NYDFS).

The news saw XRP outperforming broader crypto market benchmarks and marks a pivotal moment for Ripple’s stablecoin ambitions.

“This just in…we have final approval from NYDFS for RLUSD! Exchange and partner listings will be live soon,” Garlinghouse stated in a post on X.

The announcement comes as Ripple positions itself as a competitor in the $200 billion stablecoin market, which is currently dominated by Tether (USDT) and Circle’s USDC. The market is expected to grow exponentially in the coming years, and Ripple is keen to capitalize on this opportunity by leveraging its strong presence in global payments and institutional partnerships.

RLUSD, which is backed by short-term U.S. government bonds, is currently in beta testing on both the XRP Ledger and Ethereum networks. According to Ripple President Monica Long, the token will play a central role in the emerging trend of real-world asset tokenization.

“We aim to be a key intermediary for bridging traditional financial assets onto blockchain rails,” Long said in a recent interview.

The stablecoin market has become an essential part of the crypto ecosystem, enabling fast and low-cost global payments and boosting liquidity. RLUSD is designed to capitalize on these use cases, further integrating blockchain into traditional finance.

At the time of writing, XRP was trading up 6.8% over 24 hours, erasing earlier losses and reflecting broader optimism in the market. According to CryptoQuant data, RLUSD already has a supply of $52 million, split between $41.7 million on Ethereum and $10.4 million on XRPL.