New York Approves Ripple’s RLUSD Stablecoin – XRP Price Sees a Sharp Recovery

Ripple’s RLUSD stablecoin will soon be listed on exchanges after receiving approval from the New York State Department of Financial Services (NYDFS).

XRP, the native token of the XRP Ledger (XRPL) network, has surged 10% since the early morning of December 11 (Vietnam time). The reason comes from the good news shared by Ripple CEO, Brad Garlinghouse.

This just in…we have final approval from @NYDFS for $RLUSD! Exchange and partner listings will be live soon – and reminder: when RLUSD is live, you’ll hear it from @Ripple first.

— Brad Garlinghouse (@bgarlinghouse) December 10, 2024

He announced that the company’s RLUSD stablecoin has received final approval from the New York State Department of Financial Services (NYDFS). This is a major step towards a wider launch for RLUSD, which is currently being tested on the Ethereum and XRPL networks.

Garlinghouse informed on X (Twitter):

"Breaking news... we have received final approval from NYDFS for RLUSD! Exchanges and partners will be listing soon."

The news not only boosted XRP's price but also helped the coin outperform other assets. In the past 24 hours, XRP increased by more than 7%, exceeding the volatility of Bitcoin (BTC).

Ripple revealed its plans to enter the stablecoin market in April. According to the announcement, RLUSD is backed 1:1 by the US dollar and equivalent assets such as US government bonds, and is guaranteed to be regulatory compliant.

Stablecoins now play a core role in the crypto economic infrastructure and are increasingly popular in global payments. The stablecoin market surpassed the $200 billion mark two days ago and is dominated by two major issuers Tether (USDT) and Circle (USDC). The market is expected to grow to trillions of dollars in the next few years, and Ripple is working to gain market share in this potential segment.

Ripple expects RLUSD to strengthen the company's position in payment services and become an important intermediary in the field of real asset tokenization (RWA). Ripple President Monica Long commented that RWA is a very hot trend, helping to transform traditional financial instruments onto the blockchain, bringing higher transaction efficiency.

According to data from CryptoQuant, there is currently about $41.7 million worth of RLUSD on Ethereum and $10.4 million on XRPL. These numbers reflect Ripple's careful preparation before officially entering the stablecoin market.

The event of RLUSD receiving the “nod” from NYDFS marks an important milestone for Ripple. Not only does it help increase the price of XRP, but it also opens the door for the company to expand its influence in the stablecoin market and the field of real asset tokenization. At the same time, this also reflects Ripple’s spirit of readiness to conquer new opportunities in the crypto ecosystem, especially after the legal “earthquake” with the US SEC that has lasted since 2020.