Ripple intends to employ RLUSD to compete in the developing stablecoin market, hoping to add stability to the company’s crypto services. The New York Department of Financial Services (NYDFS) has approved Ripple’s RLUSD stablecoin, marking a significant milestone for the firm.
This approval is the final stage before the coin goes live on major cryptocurrency exchanges, as announced by Ripple CEO Brad Garlinghouse on December 10. The US dollar backs the stablecoin, which will compete with established tokens like Tether (USDT) and USD Coin (USDC).
In April, Ripple first revealed their plans for RLUSD, and they have tested the token on both the XRP Ledger and Ethereum networks. The stablecoin’s backing will include US dollar deposits, short-term US Treasury bonds, and other cash equivalents.
Ripple intends to use the RLUSD for remittance and settlement services, providing institutional investors with a less volatile asset. Following the NYDFS approval, XRP’s value increased by roughly 7%. Significant XRP token transfers to exchanges like Binance impacted the declining prices that preceded this increase.
Analysts view the coin’s recent recovery positively, predicting that XRP will shortly retest major price levels, potentially reaching $3. Ripple has already worked with a number of exchanges, including Uphold, Bitstamp, and Bitso, to help RLUSD debut.
The company also intends to collaborate with liquidity providers such as B2C2 and Keyrock to ensure seamless market operations for the stablecoin. With the stablecoin’s launch, Ripple is positioning itself as a key player in the developing stablecoin market, which is estimated to reach trillions of dollars in the next years. The company’s success with RLUSD might pave the path for increased XRP adoption and boost Ripple’s position in the cryptocurrency sector.
