Ripple receives approval from the New York regulator to launch the RLUSD stablecoin

What’s new? The head of the fintech company Ripple, which issues the XRP token with a capitalization of $132,9 billion, announced that it has received final approval from the New York Department of Financial Services (NYDFS) to launch the RLUSD stablecoin. Brad Garlinghouse added that partners and exchanges willing to list the asset will soon be presented, and the company will officially announce the launch.

Source: X.com

What else is known? RLUSD or “Real USD” pegged to the US dollar will launch on Ripple’s own blockchain called XRP Ledger (XRPL) as well as the Ethereum network. The asset, first announced in April, aims to bridge the gap between the crypto market and the traditional financial services sector.

The issuance of RLUSD on XPRL will provide high liquidity for its native decentralized exchange (DEX) and provide more blockchain platform options for developers, users, and businesses.

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Back in June, Ripple bought NYDFS-regulated digital asset custody company Standard Custody, which serves financial institutions, in preparation for the asset launch. Standard Custody CEO Jack McDonald, who spent more than 30 years at banks and investment firms, has taken on the role of Ripple’s vice president of stablecoins in addition to his current position.

Garlinghouse previously noted that Ripple was prompted to create its own stablecoin by the temporary loss of the dollar peg of one of the segment leaders, Circle’s USDC. He added that Ripple has an opportunity to enter this market as it is a trustworthy company and has already partnered with many financial institutions around the world.

The entrepreneur was also accused of attacking Tether, which issues the largest USDT stablecoin.

It is noteworthy that in early December, the XRP token rose two lines in the ranking of cryptocurrencies by market capitalization, overtook USDT and took the third place after bitcoin and Ethereum.

The sharp jump was facilitated by the general optimism of the crypto market after the victory of Donald Trump in the US presidential election, as well as the expectation of a change in the leadership of the US Securities and Exchange Commission (SEC), which could have an impact on Ripple.

In particular, if a cryptocurrency supporter becomes the new chairman, the SEC is likely to drop the lawsuit against Ripple for illegal sale of securities in the form of XRP tokens, which the company has already partially won.

Also, the commission under the new administration is more likely to approve XRP based spot exchange-traded funds (ETFs), which would increase institutional attention to the asset.

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At the time of writing, XRP has dropped to fourth place in the rankings and is trading at $2,3, having added 5,2% overnight. It has gained 292% for the month, and the asset is up 275% since the beginning of the year.