Ripple has reached a significant milestone in its expansion into the $200 billion global liquidity market, securing final approval from the New York Department of Financial Services (NYDFS) to launch its RLUSD stablecoin. Ripple CEO Brad Garlinghouse announced the regulatory approval, confirming that RLUSD will be redeemable 1:1 for U.S. dollars.
Testing and Deployment
Ripple began testing RLUSD on Ethereum and the XRP Ledger in mid-2024, aiming to integrate with established and proprietary blockchain ecosystems. By October, Ripple announced partnerships with Uphold, Bitstamp, and Bullish to support RLUSD trading.
RLUSD’s progress slowed temporarily as Ripple worked to ensure full compliance.
The stablecoin space is competitive, with USDT and USDC dominating market cap and supply. RLUSD’s success will hinge on Ripple’s established networks and innovation in areas like payments and asset tokenisation.
Stablecoins are seeing strong adoption, attributable to the recent bull run market as well as expectations of increasing penetration into traditional payment flows, as shown by Stripe's $1.1 billion acquisition of Bridge.
Regulatory Optimism
The rise of stablecoin development is fueling hopes for regulatory clarity. A Republican-backed stablecoin bill has advanced in the House Financial Services Committee but awaits a full House vote.
Ripple’s entry into the stablecoin market highlights its broader ambitions in global finance. RLUSD’s launch is set to drive competition, innovation, and regulatory discussions. Ripple's success may set a precedent for other stablecoin issuers to follow suit.
By Steven Pettigrove and Luke Misthos
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