Ripple Poised for New York Approval of Stablecoin, Set to Enter Regulated US Crypto Market
New York’s top cryptocurrency regulator, the New York Department of Financial Services (NYDFS), is reportedly close to approving RLUSD, a stablecoin issued by blockchain payments giant Ripple. If the approval goes through as anticipated, Ripple plans to launch RLUSD on December 4, marking a significant step into the regulated US digital finance sector.
The move is expected to position Ripple as a major competitor to existing stablecoin players such as Circle and Paxos, giving it an edge in the rapidly expanding $190 billion stablecoin market. RLUSD is pegged to the US dollar and aims to offer Ripple customers a less volatile alternative to XRP for cross-border payments and other blockchain-based transactions.
Ripple’s flagship RippleNet system has already earned a reputation as a faster, cheaper alternative to traditional systems like SWIFT, using blockchain technology to process transactions. However, Ripple has faced years of legal and regulatory challenges in the US, particularly surrounding its XRP token. The Securities and Exchange Commission (SEC) has argued that XRP constitutes an unregistered security, leading to significant volatility in its price and regulatory uncertainty.
XRP’s price, which had been relatively stagnant due to the SEC lawsuit, has surged to $1.70 in the wake of Donald Trump’s election win, with investors hopeful that his administration will take a more crypto-friendly approach. The potential approval of RLUSD would allow Ripple to diversify and solidify its position regardless of XRP’s legal fate.
Ripple’s stablecoin project is supported by its acquisition of Standard Custody & Trust Company earlier this year. The NYDFS-licensed trust company will serve as the issuer of RLUSD, ensuring compliance with stringent regulatory standards. Ripple is also collaborating with partners like MoonPay and Uphold to streamline RLUSD’s rollout and adoption.
Keith Grossman, president of Enterprise at MoonPay, expressed optimism, stating, “Having another well-capitalized, highly regulated player in the global stablecoin space is a win-win.”
Investors and early Ripple adopters are equally enthusiastic. Rocco Panaroa, an early investor in XRP, remarked, “I wish I had bought more.”
Ripple’s stablecoin launch is expected to create ripples—pun intended—through the broader financial ecosystem, especially as global stablecoin regulations like MiCA in Europe come into effect. With NYDFS approval imminent, all eyes are on December 4, when Ripple could usher in a new era of blockchain-based financial solutions.