Ripple new stablecoin, RLUSD, is expected to launch on December 4, pending NYDFS approval, boosting cross-border payments and market growth.
The New York Department of Financial Services (NYDFS) is expected to approve Ripple Labs’ new stablecoin, RLUSD, soon. The cross-border payments company is preparing for a potential launch on December 4, according to FOX Business. The NYDFS is known for its strict requirements. Therefore, Ripple will launch RLUSD as an overcollateralized, dollar-pegged stablecoin in compliance with state laws.
If approved, Ripple will work under a limited-purpose trust charter, which many digital asset firms in New York have adopted. This structure allows Ripple to provide its stablecoin without having to satisfy the more stringent requirements that are expected of traditional banks. If granted, the approval would be a major win for Ripple as it seeks to expand in the growing regulated U.S. digital finance market.
RLUSD Stablecoin Set to Enhance Cross-Border Payments
MoonPay CEO Keith Grossman also responded positively to the news, as it may have a positive effect on the stablecoin market. Grossman added that more well-capitalized, regulated players are helpful in the market, particularly when new regulations are on the horizon, such as Europe’s MiCA. RLUSD will be offered to partners and customers of MoonPay on the day of its release.
In September, the company’s CEO, Brad Garlinghouse, mentioned the stablecoin during a fireside chat at the Korea Blockchain Week event. He said that Ripple was in the final stages of preparing to release stablecoin RLUSD. In other words, the application of blockchain enhances the effectiveness and efficiency of transactions.
Ripple’s entry into the stablecoin market can be positive, the market of which is estimated to be around $190 billion. This action fits well into the approaches utilized by other stablecoin providers, such as Paxos and Gemini. They possess NYDFS trust charters for the PAX and GUSD stablecoins. Similarly, Circle also provides its USDC stablecoin under a BitLicense in its home country of the United States.
Other regulatory changes at federal level may also continue to define this market. In addition, it will also grow if regulations change under a new presidency. RLUSD would not only add to Ripple’s portfolio but would also advance the use of stablecoins in the financial industry.
