11:05 a.m. ▪
4
min read ▪ by
Luc Jose A.
Ripple Labs is set to reach a major milestone in the crypto world with the imminent approval of its stablecoin RLUSD by New York’s financial regulator, the NYDFS. While stablecoins are already dominating digital transactions, this project could redefine the standards in terms of transparency and reliability. The crypto sphere is holding its breath before the launch of this new dollar-pegged currency, designed to offer a robust alternative in a highly competitive market.
A strategic regulation for an innovative product
Ripple Labs has unveiled the RLUSD as a response to current challenges facing stablecoins, such as trust and regulatory compliance. According to a report published on November 29 by Fox Business, the New York Department of Financial Services is about to give the green light, which would pave the way for a launch as early as December 4. This stablecoin, “over-collateralized and backed by cash reserves and short-term equivalents”, promises to combine reliability and transparency.
Since its initial announcement in April 2024, the RLUSD has positioned itself as a direct competitor to other giants in the sector, such as Tether (USDT) and USD Coin (USDC). Ripple began testing its stablecoin in August, integrating it into its XRP Ledger and Ethereum network, thanks to the unveiling of a list of strategic partners, including Uphold, Bitstamp, and MoonPay. The company is also committed to publishing regular independent audits and monthly reports on reserves, an initiative aimed at reassuring investors and meeting the rigorous standards of regulators.
An ambitious future for Ripple and stablecoins
Beyond regulatory approval, Ripple sees the RLUSD as a lever to transform cross-border payments. In a recent statement, Brad Garlinghouse, CEO of Ripple, reaffirmed the company’s commitment to using XRP to improve liquidity and settlement times associated with the RLUSD. However, this decision has raised questions among holders of the crypto XRP, as some fear the company may shift its priorities toward its new stablecoin.
Ripple is also looking to the long term. According to its forecasts, the stablecoin market could reach a capitalization of $2 trillion by 2028. To realize this vision, the company plans to expand the RLUSD to other blockchains in the coming months, thereby consolidating its position in the global payments ecosystem.
The launch of the RLUSD, in compliance with the rigorous standards of the New York Trust Company Charter, represents a significant advance in the alliance between technological innovation and regulatory compliance. Thus, the implications of this initiative will far exceed Ripple’s boundaries, paving the way for increased adoption of stablecoins in everyday transactions. It remains to be seen whether this model will inspire other crypto sector players to meet the regulatory challenge and innovate.
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Luc Jose A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.
