Ripple Lab’s new stablecoin, Ripple USD (RLUSD), is set to be approved by the New York Department of Financial Services (NYDFS) and could be launched by December 4. The overcollateralized dollar-pegged stablecoin will provide a stable alternative amidst Ripple’s ongoing legal battle with the SEC over XRP’s security classification. While the case is in the appeals phase, the launch of RLUSD will offer a reliable option that is not subject to XRP’s volatility.
Given the lack of federal regulations for stablecoins, operating under state-level supervision is the preferred route for companies seeking to offer stablecoins. Ripple can introduce RLUSD by obtaining a limited purpose trust charter or through the BitLicense, enabling crypto exchanges to support trading and custody of crypto assets. The acquisition of Standard Custody & Trust Company in June, a NYDFS-chartered trust company, positions Ripple to launch RLUSD once approved by the NYDFS.
Beta testing of RLUSD on the XRP Ledger and Ethereum mainnet began in August, with plans to expand the stablecoin to other blockchains in the future. Ripple foresees integrating RLUSD and XRP into its cross-border payments solution to enhance the experience for global customers. Collaborations with various exchanges, including Uphold, Bitstamp, and Bitso, among others, have been established to make RLUSD accessible to users. Furthermore, Ripple commits to conducting regular audits of RLUSD reserves and publishing monthly reports for transparency.
Overall, the imminent approval and launch of Ripple’s RLUSD stablecoin signals a significant development amidst the legal uncertainties surrounding XRP. With a focus on regulatory compliance and transparency, Ripple aims to provide a stable and trusted alternative for users in the volatile crypto market. As the company navigates the legal landscape, the introduction of RLUSD represents a strategic move to offer innovation and reliability in the stablecoin space.
