Michaela
Ripple Labs CEO Brad Garlinghouse has аnnounced that the company’s RLUSD stablecoin is set to debut on exchanges soon, following its approval by the New York Department of Financial Services (NYDFS) after months of review.
Garlinghouse made the announcement in a post on X on December 10. Ripple first unveiled plans for its RLUSD stablecoin in April, positioning it as a competitor to Tether’s USDt and Circle’s USD Coin.
The company began testing its RLUSD stablecoin on the XRP Ledger and Ethereum mainnets in August. By October, the company had unveiled collaborations with several cryptocurrency exchanges, including Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish.
In September, Garlinghоuse said that the company intends to target larger players in the financial sector.
Following this announcement, the XRP surged by 10%, benefiting from a broader rebound in the cryptocurrency market and recovering earlier losses. Over the past 24 hours, the XRP gained 6.8%, outpacing Bitcoin (BTC).
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Similar to other USD stablecoins, RLUSD will maintain a 1:1 peg to the U.S. dollar. Ripple announced in April that it would back the stablecoin with a mix of USD deposits, short-term US Treasury bonds, and other cash equivalents to ensure stability.
Ripple President Monica Long stated that RLUSD’s design would be “complementary and additive” to XRр. According to data from analytics firm CryptoQuant, there is currently $41.7 million worth of RLUSD tokens on the Ethereum network and $10.4 million on the XRP Ledger (XRPL).
RLUSD Approval Amid SEC Legal Battle
Ripple’s announcement regarding its RLUSD stablecoin is notable, especially in the context of its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).
Related: US Lawmakers Propose Tax Breaks for Small Stablecoin Payments and Staking
The SEC filed a lawsuit against Ripple, alleging that its XRP token is an unregistered security. This case has been a significant point of contention in the cryptocurrency industry, as its outcome could set a precedent for the classification and regulation of other digital assets.
While RLUSD is a separate product from XRр, the SEC’s broader stance on cryptocurrency regulation could have implications for Ripple’s entire portfolio, including its stablecoin prоject.
However, there has been speculation that under new leadership the SEC could consider dropping its ongoing case against Ripple.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
