With the NYDFS finally approving its RLUSD stablecoin, Ripple Labs aims to strengthen XRP’s market standing, expand institutional adoption, and compete with USDC.
NYDFS Approves Ripple Stablecoin
Ripple Labs has received final approval from the New York State Department of Financial Services (NYDFS) to launch its stablecoin, RLUSD. The announcement was made by Ripple CEO Brad Garlinghouse via X (formerly Twitter) on Tuesday, marking a significant milestone for the company. Ripple’s progress with RLUSD and broader initiatives signals the company’s growing influence in the digital asset space.
RLUSD: Features and Strategic Goals
RLUSD is a US dollar-backed stablecoin designed with 1:1 backing by US dollar deposits, short-term US government treasuries, and cash equivalents. Ripple’s stablecoin aims to challenge the dominance of Circle’s USDC in the US market. USDC is currently the second-largest stablecoin globally, with a market capitalization of $40 billion, trailing only Tether.
The RLUSD stablecoin has undergone extensive testing on both the XRP Ledger and Ethereum networks and is poised for listings on major crypto exchanges.
Ripple’s president, Monica Long, previously highlighted that RLUSD would serve as a complementary asset to XRP, targeting large institutional players.
Ripple’s Rising Momentum
Ripple Labs has seen a surge in momentum in recent months, emerging stronger from its prolonged legal battle with the SEC. Its native cryptocurrency, XRP, now ranks as the fifth-largest cryptocurrency globally by market capitalization, with its value appreciating significantly. XRP has gained over 200% in the past 30 days, reflecting its growing acceptance and utility.
Ripple’s advancements extend beyond its stablecoin. The XRP Ledger has gained traction globally, especially in BRICS countries like India and Russia. Notably, the Russian government recently enacted legislation recognizing XRP and other cryptocurrencies, while India’s Reserve Bank announced a partnership with Ripple Labs for its virtual Rupee initiative.
Partnerships and Future Projections
Ripple has established strategic partnerships to bolster RLUSD adoption, including collaborations with Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish. Executives at Ripple speculate that RLUSD could achieve a market capitalization of $2 trillion by 2028.
As the stablecoin prepares for its debut, its entry into New York, a global financial hub, is expected to further Ripple’s penetration in the institutional finance sector. The approval is anticipated to positively impact XRP prices, which are currently trading at $2.36. With the holiday season approaching, investor sentiment around XRP remains optimistic, with projections suggesting the cryptocurrency could approach the $3 mark by year-end.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
