Author: Mikhail Vnuchkov; Source: tradersunion

According to "Fox Business" on November 29 Ripple Labs’ RLUSD stablecoin, an over-collateralized digital currency pegged to the U.S. dollar, is about to receive approval from the New York Department of Financial Services (NYDFS), according to reports. The milestone could pave the way for the stablecoin to launch as early as December 4, marking Ripple’s latest venture into the fast-growing stablecoin market.

Ripple first announced the launch of RLUSD in April 2024 as a competitor to US dollar currency (USDC) and Tether (USDT), emphasizing trust, stability and practicality sex. The company plans to integrate RLUSD alongside XRP into its cross-border payments solution, aiming to increase global liquidity and settlement speeds. Ripple executives predict that the stablecoin market will reach $2 trillion by 2028, which will bring huge business opportunities to multiple issuers.

Ripple has begun testing RLUSD on XRP Ledger and the Ethereum mainnet, with plans to expand to other blockchains. To ensure transparency and compliance, Ripple is committed to conducting third-party audits and submitting monthly collateral reserve reports. Major exchanges including Bitstamp, Uphold, and MoonPay will also support the stablecoin.

Ripple CEO Brad Garlinghouse reiterates the company's strategy to use XRP to increase RLUSD liquidity , while adhering to the strict regulatory standards set forth in the New York Trust Company's charter. Despite speculation that Ripple will switch from XRP to RLUSD, Ripple reiterated its commitment to the flagship token as a core component of the ecosystem.

The expected NYDFS approval will allow Ripple to strengthen its role in the stablecoin market, potentially reshaping the cross-border payments system. RLUSD’s compliance-focused approach and integration with existing Ripple products may provide a competitive advantage, especially as the stablecoin market continues to expand.

The upcoming RLUSD not only solidifies Ripple’s foothold in digital finance, but also highlights the concerns of U.S. regulatorsRecognition of blockchain-based financial solutions continues to grow.

Meanwhile, as Ripple’s lawsuit with the U.S. Securities and Exchange Commission (Ripple-SEC) comes to an end, XRP whales moved 140 million coins.