Author: Turner Wright, CoinTelegraph; Compiler: Deng Tong, Golden Finance

Ripple Labs CEO Brad Garlinghouse reported that after months of consideration, the New York Department of Financial Services (NYDFS) approved the The company’s RLUSD stablecoin.

In an article on December 10, Garlinghouse stated that Ripple will soon announce RLUSD’s list of exchanges and partners following NYDFS approval. The company launched its stablecoin initiative in April as a competitor to Tether’s USDt and Circle’s USD Coin.

Ripple CEO announces NYDFS approval of RLUSD stablecoin. Source: Brad Garlinghouse

Ripple executives speculate that the market value of stablecoins could reach $2 trillion by 2028. The company began testing RLUSD on the XRP ledger and the Ethereum mainnet in August, and in October announced partnerships with exchanges including Maintenance, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA and Bullish.

Garlinghouse said in September that Ripple planned to focus RLUSD on institutional players. As of December 10, the combined market capitalization of USDT and USDC was approximately $180 billion.

Like all U.S. dollar stablecoins, RLUSD will be pegged to the U.S. dollar at a 1:1 ratio. Ripple said in April that it planned to back the tokens with U.S. dollar deposits, short-term U.S. Treasury bills and “other cash equivalents.”

In June of this year, Ripple President Monica Long said that RLUSD would be “complementary and complementary” to XRP.

Garlinghouse appeared on the December 8 episode of "60 Minutes" to discuss the cryptocurrency industry's role in influencing the 2024 U.S. election. Ripple is also engaged in an ongoing legal battle with the U.S. Securities and Exchange Commission over its XRP token offering.