Ripple’s RLUSD Gets Final Approval from NYDFS to Launch USD-Pegged Stablecoin

• Ripple’s RLUSD stablecoin is USD-pegged, backed by cash and Treasuries, ensuring stability and regulatory compliance.
• RLUSD underwent beta testing on XRP Ledger and Ethereum, marking a strategic step in Ripple’s cross-border payment solutions.
• Ripple partners with exchanges and market makers like Uphold and B2C2 to ensure RLUSD’s market efficiency and accessibility.

Ripple Labs has received approval from the New York Department of Financial Services (NYDFS) to launch its USD-pegged stablecoin, RLUSD. CEO Brad Garlinghouse confirmed the approval on X (formerly Twitter), announcing,

This just in…we have final approval from NYDFS for RLUSD! Exchange and partner listings will be live soon – and reminder: when RLUSD is live, you’ll hear it from Ripple first.

The approval positions Ripple to expand its presence in the competitive stablecoin market, with RLUSD poised for integration across multiple platforms.

RLUSD: Fully Backed and Designed for Stability

RLUSD is structured as a 1:1 USD-pegged stablecoin, backed by cash, short-term Treasuries, and other equivalents. Ripple ensures compliance by conducting third-party audits and issuing monthly reports on collateral reserves. 

Notably, RLUSD underwent beta testing starting in August on the XRP Ledger and Ethereum blockchains. This testing phase was a precursor to Ripple’s broader rollout strategy, which aims to enhance stability and interoperability within the crypto ecosystem.

The stablecoin is set to complement XRP, Ripple’s native cryptocurrency. Ripple envisions RLUSD and XRP working together to streamline cross-border payment solutions. According to Ripple President Monica Long, RLUSD’s design integrates seamlessly with XRP to leverage its liquidity while stabilizing RLUSD’s value in volatile markets.

Launch Partnerships and Expanding Ecosystem

Ripple has disclosed its collaboration with leading exchanges and liquidity providers to ensure RLUSD’s availability. Confirmed partners include Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish. Liquidity will be supported by market makers such as B2C2 and Keyrock, aiming to maintain efficiency and accessibility.

Some users have already reported setting up RLUSD Trustlines on Xaman Wallet, though Ripple has not yet issued the stablecoin officially. Garlinghouse emphasized that announcements about RLUSD’s availability would only come directly from Ripple, warning users to avoid fake tokens.

Compliance-Driven Strategy Targets Institutional Players

Ripple CEO Brad Garlinghouse highlighted RLUSD’s alignment with institutional needs, stating the project prioritizes strict regulatory compliance. This approval by the NYDFS demonstrates Ripple’s commitment to adhering to legal standards and addressing the demands of both retail and institutional markets. Ripple’s long-term vision includes scaling RLUSD for integration into decentralized finance (DeFi) protocols and additional blockchain networks.