Key Points
- Ripple is on the verge of receiving approval from New York regulators to launch RLUSD, a new stablecoin, with an expected launch date of December 4, marking its entry into the regulated US crypto market.
- The move comes as XRP, Ripple’s native token, has seen significant price growth following Trump’s election victory, reaching $1.70 and becoming the fifth largest cryptocurrency with a $99 billion market cap.
Regulatory Breakthrough
According to Fox Business, the New York Department of Financial Services (NYDFS) is poised to approve Ripple’s new stablecoin product, RLUSD. The approval would position Ripple as a significant player in New York’s regulated digital finance market, putting it in direct competition with established stablecoin issuers like Circle, Paxos, and Gemini.
Strategic Expansion and Market Impact
Ripple’s entry into the stablecoin market represents a strategic expansion beyond its core business of RippleNet, a decentralized global payments network. The company completed the acquisition of Standard Custody & Trust Company in June, which will serve as the issuer of RLUSD. The stablecoin launch will be supported by partnerships with payment providers including Bitstamp, Moonpay, and Uphold.
Regulatory Context and Future Outlook
The stablecoin market, currently valued at around $190 billion, is expected to grow under the incoming Trump administration, which has promised to make the U.S. the “crypto capital of the planet.” The launch comes at a time when Ripple’s XRP token remains in regulatory limbo with the SEC, though the case could potentially be dropped by the incoming administration in January. RLUSD will offer customers a stable alternative to XRP, providing a regulated option for digital currency transactions without exposure to price volatility or regulatory uncertainty.
Keith Grossman, president of Enterprise at MoonPay, expressed support for the launch, stating, “For another well-capitalized, highly regulated player to enter into the global stablecoin marketplace – especially as MiCA regulation in Europe is about to be implemented – is a win-win and MoonPay is proud to provide access to RLUSD for our partners and customers on day one of Ripple’s launch.”
