- Ripple’s RLUSD stablecoin secures NYDFS approval, ensuring its availability on major exchanges soon.
- XRP rallied 10% after the approval, outperforming Bitcoin and other market indices.
- RLUSD aims to dominate the growing stablecoin market, projected to reach trillions in value.
Ripple CEO Brad Garlinghouse announced that the company’s RLUSD stablecoin has received final approval from the New York State Department of Financial Services (NYDFS). This regulatory milestone clears the path for the dollar-pegged token to debut on major exchanges. Garlinghouse confirmed in a social media post that exchange and partner listings would go live soon.
XRP Surges Amid Positive Market Sentiment
Following the announcement, XRP, the native token of the XRP Ledger (XRPL), experienced a 10% rally. This surge positioned XRP ahead of broader market trends, outperforming Bitcoin and other top cryptocurrencies. As of Tuesday afternoon, XRP had erased prior losses and gained 6.8% over 24 hours.
Initially announced in April, RLUSD entered beta testing in August on the XRP Ledger and Ethereum networks. Ripple’s enterprise partners have been testing the token, which has amassed a $52 million supply split across the two blockchains. According to analytics firm CryptoQuant, $41.7 million resides on Ethereum, while $10.4 million is on XRPL.
Growing Demand for Stablecoins
Stablecoins are pivotal in the crypto economy, serving as efficient tools for global payments and financial transactions. Ripple’s entry into this market challenges leaders like Tether (USDT) and Circle (USDC), which dominate the current $200 billion sector. Experts predict the stablecoin market could expand to trillions of dollars in the coming years, with Ripple aiming for a significant share.
RLUSD stands out with backing from short-term U.S. government bonds, reflecting Ripple’s compliance-driven approach. Ripple’s President Monica Long emphasized the company’s goal to tokenize real-world assets, enabling streamlined transactions on blockchain platforms. This aligns with the broader trend of financial institutions adopting blockchain for efficiency.
Ripple’s established reputation in institutional payment services positions RLUSD as a credible contender in the evolving stablecoin market. Analysts view this development as a critical step in Ripple’s strategy to expand its footprint in the crypto ecosystem.
With regulatory approval secured, RLUSD is poised to make its mark as the stablecoin sector continues its rapid growth trajectory.
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