Originally published on: November 29, 2024
Ripple Labs is on the brink of getting the green light from the New York Department of Financial Services (NYDFS) to launch their RLUSD stablecoin, a dollar-pegged stablecoin. According to sources speaking to Fox Business, the approval is imminent, with a potential launch date of Dec. 4.
The announcement of the RLUSD stablecoin initially caused concern among XRP holders, fearing that Ripple Labs would shift its focus away from the token. However, there has been no confirmation from Ripple Labs about abandoning XRP in favor of the new stablecoin.
Ripple’s plan to develop the RLUSD stablecoin was first revealed in April 2024, aiming to compete with established stablecoins like USD Coin and Tether. Ripple executives have high hopes for the stablecoin market, forecasting a $2 trillion market capitalization by 2028.
Testing of the RLUSD stablecoin has already begun on the XRP Ledger and Ethereum mainnet, with plans to expand to other blockchains in the future. Ripple Labs has pledged to conduct regular third-party audits of the collateral reserves backing the stablecoin and provide monthly reports on the same.
Exchange partners for RLUSD have also been announced, including Uphold, Bitstamp, Bitso, and others. Ripple co-founder and CEO Brad Garlinghouse emphasized the company’s commitment to using existing products like XRP to enhance liquidity for RLUSD and ensure compliance with regulators under its New York Trust Company Charter.
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