The New York Department of Financial Services (NYDFS) is about to approve Ripple’s eagerly awaited stablecoin, RLUSD, which would be a significant milestone for the business. According to a FOX Business report, the business is awaiting approval from the crypto regulator in New York.
Ripple plans to introduce RLUSD on December 4 to mark its debut in the cutthroat New York cryptocurrency market, assuming the authorization is approved. As a stablecoin that is 1=1 correlated with the US dollar, RLUSD is completely backed by US dollar deposits, short-term government treasuries, and other safe assets.
With intentions to expand to additional platforms and decentralized finance (DeFi) protocols, Ripple’s new coin will first be accessible on the Ethereum and XRP Ledger (XRPL) blockchains. Given the ongoing legal disputes Ripple has with the U.S. Securities and Exchange Commission (SEC) regarding its native token, XRP, this move is a major one for the company.
The SEC’s allegations that XRP is an unregistered security have left it in limbo, but RLUSD gives Ripple access to the stablecoin market, which is currently worth close to $200 billion. It is anticipated that Ripple’s new endeavor will face competition from established stablecoin issuers such as Circle, Paxos, and Gemini. For the stablecoin launch, Ripple is also seeking to collaborate with well-known platforms like Moonpay and Bitstamp.
The project has received praise from Keith Grossman of Moonpay, who described it as a “win-win” for the global stablecoin ecosystem. With the NYDFS’s approval, Ripple will be able to function in one of the world’s most regulated digital finance markets. Additionally, this will assist the business in meeting the strict requirements for security, transparency, and consumer protection set forth by the NYDFS in its limited-purpose trust charter.
