Ripple, a cryptocurrency company, is getting ready to launch its new stablecoin called RLUSD on December 4th, after receiving approval from the New York Department of Financial Services (NYDFS). This stablecoin is pegged to the US dollar and is fully collateralized.
This launch comes at a crucial time for Ripple, as it is currently facing legal challenges from the US Securities and Exchange Commission (SEC) regarding its XRP cryptocurrency. By introducing RLUSD, Ripple aims to provide a stable alternative to XRP, which is known for its price volatility.
Unlike XRP, RLUSD will be subject to state-level regulations, as there is currently no federal framework for regulating stablecoins. Ripple has taken steps to comply with New York regulations by acquiring Standard Custody & Trust Company, a trust company licensed by NYDFS.
The company has been testing RLUSD on different blockchain platforms since August, including the XRP Ledger and Ethereum mainnet. Ripple plans to expand the stablecoin to other blockchains in the future to meet the growing demand for stable digital assets.
In addition to obtaining approval from NYDFS, Ripple has partnered with several top cryptocurrency exchanges to offer RLUSD to users. These exchanges include Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish. Ripple also plans to conduct regular audits of the reserves backing RLUSD to ensure transparency and stability.
Overall, the launch of RLUSD represents a significant milestone for Ripple as it navigates regulatory challenges in the cryptocurrency space. By providing a stablecoin that is compliant with state regulations, Ripple aims to enhance its cross-border payment solutions and improve the overall user experience for its global customers.