RLUSD, a USD-pegged stablecoin launched by Ripple, has officially received approval from the New York State Department of Financial Services (NYDFS). Ripple’s CEO, Brad Garlinghouse, confirmed the milestone on social media platform X (formerly Twitter), emphasizing that exchange and partner listings for the stablecoin will soon go live.
“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,” Garlinghouse shared.
XRP Prices Surge Following Approval
The approval news has sparked optimism among crypto investors, causing the price of XRP, Ripple’s native token, to surge. XRP experienced a 21% increase from its recent $1.9 low, climbing to trade above $2.3. Over the past 24 hours, the cryptocurrency has gained approximately 7.4%. Despite this recent upswing, XRP’s performance over the past week reflected a 10% decline. Meanwhile, the broader crypto market faced volatility, with Bitcoin long positions seeing $416 million in liquidations.
Understanding RLUSD
Ripple introduced RLUSD in October in collaboration with prominent crypto exchanges and financial institutions, including Uphold, Bitstamp, and Bitso. Designed to support cross-border payments, RLUSD aims to provide global users with a stable and efficient digital payment solution.
Unlike traditional cryptocurrencies that are often subject to significant price swings, RLUSD is pegged to the US dollar, ensuring greater stability. Ripple envisions RLUSD as a crucial tool for facilitating international transactions, allowing businesses to transfer capital quickly and efficiently.
The stablecoin also serves as a bridge between fiat currencies and crypto assets, enabling seamless conversions between the two. Beyond payments, RLUSD is set to enhance liquidity and transparency in digital asset markets by acting as collateral for real-world assets like commodities and securities.
With its dual focus on stability and utility, RLUSD is positioned to play a pivotal role in bridging traditional financial systems with the evolving world of digital currencies. Ripple’s latest achievement highlights the growing importance of regulated, innovative solutions in the cryptocurrency space.