Key Takeaways
- Ripple is set to receive NYDFS approval to issue the RLUSD stablecoin through a limited purpose trust charter.
- The introduction of RLUSD positions Ripple in competition with US stablecoin issuers like Circle, Paxos, and Gemini.
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Ripple is set to receive approval from the New York Department of Financial Services (NYDFS) to launch its RLUSD stablecoin, allowing it to enter the US crypto market, according to a Fox Business report.The regulatory approval will enable Ripple to operate as a major player in New York’s regulated digital finance market and the broader stablecoin ecosystem.Ripple currently operates RippleNet, a global payment network using blockchain technology to provide cross-border payment solutions for banks and businesses as an alternative to SWIFT.While the company’s native token XRP serves as a bridge currency for transactions, it remains unregulated in the US.XRP, currently trading at $1.70 and ranking as the fifth-largest crypto asset by market capitalization, has seen renewed momentum.The token’s price plunged over 50% in 2020 after the SEC filed a lawsuit alleging securities law violations.However, it recently surged following Donald Trump’s election win, driven by his promises to ease crypto regulation and position the US as the “crypto capital of the planet.”Further gains were fueled by the announcement of SEC Chair Gary Gensler’s departure, which XRP holders view as a positive step, anticipating a more crypto-friendly replacement under Trump.This move positions Ripple in direct competition with established US stablecoin issuers including Circle, Paxos, and Gemini.The stablecoin market, currently valued at $190 billion, is expected to expand further under the pro-crypto Trump administration, which may pave the way for federal stablecoin regulation.
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