Ripple, the cross-border payments company behind XRP and RippleNet, is reportedly close to receiving approval from the New York Department of Financial Services (NYDFS) to launch its new stablecoin, RLUSD.
According to sources familiar with the matter, the NYDFS is expected to grant Ripple a Limited Purpose Trust Charter in the coming days, paving the way for the launch of RLUSD as early as December 4.
The approval would allow Ripple to enter the heavily regulated U.S. stablecoin market, putting it in direct competition with industry leaders like Circle (USDC), Paxos (USDP), and Gemini (GUSD). The statute would allow Ripple to legally offer RLUSD to the public in New York, a state known for its strict regulatory standards for digital assets.
Ripple’s flagship product, RippleNet, was designed to offer faster and more cost-effective cross-border payments for banks and businesses by serving as an alternative to the traditional SWIFT banking network. Ripple’s native cryptocurrency, XRP, played a central role in these transactions as a bridge currency. However, XRP has faced significant legal challenges in the US, with the Securities and Exchange Commission (SEC) claiming that it constitutes an unregistered security.
The ongoing legal battle with the SEC, currently in the appeals phase, has kept XRP’s regulatory status in limbo. Despite these challenges, following Donald Trump’s recent election victory, the price of XRP rose to $1.90 on optimism that his administration will adopt crypto-friendly policies. XRP currently ranks as the fifth-largest cryptocurrency by market cap.
*This is not investment advice.
