Ripple’s RLUSD Stablecoin Receives Regulatory Approval, XRP Surges
The approval marks a pivotal step toward the public launch of RLUSD, Ripple’s stablecoin currently in test mode on Ethereum and the XRP Ledger (XRPL).
XRP, the native cryptocurrency of the XRPL, saw a significant boost during Tuesday’s U.S. trading hours after Ripple CEO Brad Garlinghouse announced that the company’s stablecoin, RLUSD, had secured regulatory approval from the New York Department of Financial Services (NYDFS).
“Breaking news…we’ve received final approval from NYDFS for RLUSD! Exchange and partner listings are on the horizon,” Garlinghouse shared on X (formerly Twitter).
Following the announcement, XRP rallied 10%, reversing earlier losses and leading a broader crypto market rebound. The token outperformed bitcoin (BTC) and the CoinDesk 20 Index, gaining 6.8% over the past 24 hours. The XRPL network, developed by engineers who later founded Ripple, has long been tied to Ripple’s financial products and services.
A Strategic Move into the Stablecoin Market
Ripple unveiled its stablecoin ambitions in April, aiming to enter the rapidly expanding sector with RLUSD, a cryptocurrency backed by short-term U.S. government bonds. Stablecoins are a cornerstone of the crypto economy, widely used for global payments—a core focus for Ripple’s business strategy.
The stablecoin market, led by Tether (USDT) and Circle (USDC), is currently valued at nearly $200 billion but is projected to reach trillions in the coming years. Ripple intends to capitalize on this growth by leveraging its established payment infrastructure and institutional partnerships.
Ripple President Monica Long highlighted the company’s ambition to position RLUSD as a key intermediary for tokenizing real-world assets. “Tokenization is a transformative trend in crypto, enabling traditional financial instruments to operate on blockchain for more efficient transactions,” Long said in an October interview with CoinDesk.
Beta Testing and Token Metrics
RLUSD is currently in beta testing on both the XRP Ledger and Ethereum. According to Long, the stablecoin has been “operationally ready” for some time, with the regulatory green light being the final hurdle to its public launch.
Data from analytics firm CryptoQuant reveals $41.7 million worth of RLUSD tokens circulating on Ethereum and $10.4 million on the XRPL.
As Ripple prepares for RLUSD’s full release, the company is poised to compete in the burgeoning stablecoin market, leveraging its regulatory approval and robust payment network to capture a significant share of the expanding sector.
