Ripple Labs is on the verge of gaining approval from Recent York’s main cryptocurrency regulator for its modern stablecoin, RLUSD. According to Fox Business reportThe Recent York Department of Financial Services (NYDFS) is expected to greencoin, with a potential launch date set for December 4.
Ripple will launch RLUSD Stablecoin
If approved, Ripple will be able to legally offer RLUSD to the public, cementing its position as a major player in Recent York’s regulated digital finance market and expanding its reach into the broader stablecoin ecosystem.
However, both Ripple Labs and the regulator have not yet commented on the matter or made any official announcement confirming the information gathered by Fox sources.
Ripple’s core business centers around its decentralized global payments network RippleNet, which uses blockchain technology to facilitate faster, cheaper and more productive cross-border transactions for banks and businesses.
This approach is an alternative to the conventional global bank settlement system SWIFT. Ripple’s native token, XRP, acts as a settlement bridge currency, although its status remains uncertain due to ongoing legal challenges with the US Securities and Exchange Commission (SEC).
The SEC has he argued that XRP should be classified as an “unregistered security,” which Ripple disputes in an appellate case currently before the Second Circuit.
The legal battle had a significant impact on XRP’s market performance. Following the SEC lawsuit in behind schedule 2020, the price of XRP fell by more than 50%, resulting in a market capitalization loss of approximately $16 billion. Since then, the price of XRP has fluctuated, often remaining below the $1 level as Ripple dealt with legal challenges.
However, recent events, including Donald Trump’s victory in the November 5 election and SEC Chairman Gary Gensler’s official announcement of his departure, have sparked optimism among investors, pushing the price of XRP to $1.89 and positioning it as the fifth-largest cryptocurrency by market capitalization exceeding USD 107 billion.
Competition with established stablecoins
By entering the stablecoin market with RLUSD, Ripple aims to provide a stable alternative for customers looking to employ digital currencies without the volatility associated with XRP.
To operate within this regulatory framework, a company is expected to obtain a narrow purpose trust charter, allowing it to offer certain digital asset services without the complexities of conventional banking regulations.
Additionally, NYDFS offers BitLicense, which allows exchanges such as Coinbase and Robinhood to provide trading and custody services to cryptocurrencies.
Ripple’s entry into the stablecoin sector comes as other companies, including Paxos and Gemini, have already received approval to offer their stablecoins, PAX and GUSD, respectively.
Keith Grossman, President of Enterprise at MoonPay, expressed enthusiasm about the modern entry into the stablecoin market, emphasizing the importance of “well-capitalized, highly regulated players” in the changing global financial landscape.
Featured image from DALL-E, chart from TradingView.com
