Ripple's RLUSD Stablecoin Receives NYDFS Approval, Set to Launch Amid Potential Volatility

Dec 16, 2024, 05:35 AM

Ripple's new stablecoin, RLUSD, has received approval from the New York Department of Financial Services (NYDFS) and is set to launch soon. The stablecoin, pegged 1:1 to the U.S. dollar, aims to enhance Ripple's offerings in cross-border payments and remittances. Ripple CTO David Schwartz has warned investors about potential volatility at launch due to possible supply shortages, with some pre-market bids reaching as high as $1,244. Despite the hype, Schwartz emphasized that RLUSD is designed to maintain its $1 peg, advising against speculative buying. The launch of RLUSD is expected to significantly boost XRP demand in 2025, as every RLUSD transaction on the XRP Ledger will burn XRP, potentially driving up its value. Ripple's CEO Brad Garlinghouse confirmed that RLUSD has been in beta testing on both the XRP Ledger and Ethereum since August, positioning it as a competitive option in the stablecoin market, backed by low-risk assets like Treasury bonds and dollar deposits. Ripple aims to leverage RLUSD in the growing trend of tokenization, enhancing its utility in financial transactions.