Ripple Labs’ next stablecoin, Ripple USD (RLUSD), is reportedly on track to get approval from the New York Department of Financial Services (NYDFS) and is anticipated to launch on December 4, according to sources cited by Fox Business.
This RLUSD launch date will allow Ripple Labs to lawfully issue RLUSD, a dollar-pegged stablecoin that is overcollateralized.
Ripple’s Legal Struggles and RLUSD’s Stability Amid XRP’s Volatility
The release of the RLUSD comes when Ripple and the U.S. Securities and Exchange Commission (SEC) are still in court over allegations that XRP is an unregistered security. The case, currently on appeal in the Second Circuit, could be dropped if Donald Trump takes over this January and SEC Chair Gary Gensler resigns.
How will RLUSD impact XRP? As the case drags on, RLUSD is well-positioned to serve as a stable alternative to XRP’s frequent fluctuations, a safe haven for investors during this period of turmoil.
The most sensible way for businesses eager to enter the market of stablecoin is, of course, to leverage this state-level oversight since federal legislation surrounding stablecoins remain vague. Laying hands on either the BitLicense-a license for crypto exchanges enabling them to police trading and custody of digital assets-or a limited-purpose trust charter, issued to Paxos and Gemini already, shall pave the road for Ripple to kick off RLUSD.
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Getting Ready for RLUSD- Ripple
Ripple first announced in April that it was launching RLUSD. Standard Custody & Trust Company, an NYDFS-chartered Limited Purpose Trust Company, was acquired by Ripple in June. The stablecoin, after its approval by the NYDFS, will be issued by Standard Custody, which is already licensed to offer crypto custodial services by the NYDFS.
Ripple started beta testing RLUSD on the Ethereum mainnet and XRP Ledger in August. The company also announced plans to expand the stablecoin to other blockchains at the time.
Ripple announced in October that it had partnered with major exchanges to allow users to access RLUSD. These include Bullish, CoinMENA, Independent Reserve, MoonPay, Bitstamp, Bitso, and Uphold.
Ripple intends to provide monthly updates and conduct regular, independent audits of the reserves backing RLUSD.
RLUSD Presale in a Nutshell
With the launch of RLUSD, Ripple launches itself into the U.S. stablecoin market, marking one of the significant turn-by-turn changes within the crypto world. Right after it finally received the green light to operate in New York, Ripple dreams of a race with colossals in the sphere of stablecoins, such as USDT and USDC. According to reports, the RLUSD stablecoin is fully collateralized in cash and pegged to the US dollar; therefore, users receive advantages in terms of transparency and compliance.
With regulators like the SEC increasingly keeping a close eye on stablecoins, Ripple’s commitment to controlled growth has been put into the spotlight by its highly publicized RLUSD presale.
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Possible Impact on the Price of XRP
By expanding the Ripple ecosystem and its use cases, the introduction of RLUSD might have the indirect effect of propping up the value of XRP. The efficiency of transactions on RippleNet should be enhanced with RLUSD, which could raise demand for XRP as a liquidity bridge asset.
Furthermore, institutional investors seeking compliance-friendly crypto solutions might get drawn to the stablecoin, which would increase trust in Ripple’s wider product line. Stablecoins existing alongside each other in the Ripple ecosystem could enhance network effects and adoption, even though they are not direct competitors to XRP.
Does it have the potential to influence XRP’s price? Even though RLUSD is not tied to the price of XRP directly, it could positively impact its price by enhancing Ripple’s market positioning and utility.
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