Ripple has achieved a significant milestone with the approval of its U.S. dollar-backed stablecoin by the New York Department of Financial Services (NYDFS). This pivotal development brings the much-anticipated public launch of the RLUSD token closer to reality, as indicated by CEO Brad Garlinghouse. Currently, the RLUSD token is undergoing testing on both Ethereum and the XRP Ledger, with plans to hit the market soon.
Regulatory Backing and Market Impact
In a recent update on social media platform X, Garlinghouse shared the exciting news that Ripple has obtained the necessary regulatory backing for RLUSD. This announcement triggered a sharp 10% rise in XRP’s value, helping the cryptocurrency recover from previous dips and outpacing both Bitcoin and the broader CoinDesk 20 Index.
Ripple aims to make a strong entry into the stablecoin space, which fits perfectly with its vision of developing a highly regulated digital currency backed by government bonds. Stablecoins have become a crucial element in facilitating global monetary transactions, an area where Ripple has invested considerable focus. Currently, the market is dominated by major players like Tether (USDT) and Circle (USDC), who currently control almost $200 billion worth of stablecoins. However, industry experts foresee significant growth in this sector, and Ripple is keen to capture a slice of the pie.
Strategic Design and Current Status
Monica Long, President of Ripple, explained that the RLUSD token is strategically designed to elevate the company’s existing payment services while also serving as a key enabler for the tokenization of real-world assets. This initiative aligns with the increasing trend of leveraging blockchain technology to enhance the efficiency of traditional financial instruments.
As it stands, the RLUSD token is in its beta testing phase across both the XRP Ledger and Ethereum networks. Long mentioned previously that while the token was ready for operations, it was waiting for regulatory clearance before making its public debut.
Current Token Distribution
Analyzing recent data from CryptoQuant, it appears that RLUSD tokens are already issued across various platforms, with approximately $41.7 million allocated on Ethereum and another $10.4 million on the XRP Ledger.
Source: Coindesk
