Ripple’s New Stablecoin Set to Receive Approval from NYDFS
Ripple Lab’s new stablecoin, Ripple USD (RLUSD), is on track to be approved by the New York Department of Financial Services (NYDFS) and may be launched by December 4th, according to a report by Fox Business.
Key Points:
- Ripple Labs is awaiting approval to offer RLUSD, an overcollateralized dollar-pegged stablecoin.
- RLUSD launch coincides with Ripple’s legal battle with the SEC over XRP’s security status.
- RLUSD aims to provide a stable alternative to volatile cryptocurrencies like XRP.
Regulatory Landscape for Stablecoins
With the absence of federal stablecoin regulations, Ripple is pursuing state-level regulation for RLUSD. The company can opt for a limited purpose trust charter or apply for a BitLicense, allowing them to operate within regulatory guidelines.
Development Timeline:
- April: Ripple announced plans for RLUSD launch.
- June: Ripple acquired Standard Custody & Trust Company, awaiting NYDFS approval for RLUSD issuance.
- August: Beta testing of RLUSD began on XRP Ledger and Ethereum mainnet.
Partnerships and Audits
Ripple has partnered with top exchanges to ensure global availability of RLUSD, including Uphold, Bitstamp, Bitso, and others. The company plans to conduct regular audits of RLUSD reserves and publish monthly reports for transparency.
Future Plans:
- Ripple aims to expand RLUSD to other blockchains in the future.
- The stablecoin will be integrated into Ripple’s cross-border payments solution to enhance user experience.
