Regulators Approve Ripple’s Stablecoin, XRP Surges 10%, CEO Highlights Milestone

Ripple’s RLUSD Stablecoin Gets NYDFS Approval, XRP Soars 10%

Ripple has secured a significant win in its stablecoin venture, with the New York Department of Financial Services (NYDFS) granting approval for its RLUSD token. This approval sent XRP, the native token of the XRP Ledger, soaring by 10%, outpacing the broader crypto market rally on Tuesday afternoon.

Ripple CEO Brad Garlinghouse announced the news on X, sharing, “Final approval from NYDFS for RLUSD is here! Exchange and partner listings are coming soon.” The announcement came amid a broader rebound in the cryptocurrency market, with XRP’s 6.8% gain over the last 24 hours leading the charge among major cryptos.

Ripple’s Strategic Play in the Stablecoin Market

Ripple’s RLUSD, backed by short-term U.S. government bonds, is designed to offer a highly regulated, stable alternative to current dominant stablecoins like Tether (USDT) and Circle’s USDC. Ripple’s move into the stablecoin space comes as part of its broader strategy to integrate digital assets into global payment networks and facilitate tokenization of traditional financial assets.

Monica Long, Ripple’s President, explained earlier this year that RLUSD is part of Ripple’s goal to enhance cross-border payments and tokenize real-world assets, an area seeing increasing interest in the blockchain space.

RLUSD: Testing on Ethereum and XRP Ledger

Currently in its beta phase on both the Ethereum and XRP Ledger networks, RLUSD has been “operationally ready” for months but awaited regulatory clearance. Data from CryptoQuant shows $41.7 million worth of RLUSD is already circulating on Ethereum, with $10.4 million on XRP Ledger, showing a strong initial uptake in the test phase.

With NYDFS approval now in place, Ripple is ready to launch the token publicly, joining the rapidly growing stablecoin market that is expected to reach trillions of dollars in the coming years.

Ripple’s foray into stablecoins marks a key step in its ongoing mission to drive global digital payments adoption and further establish itself as a leader in blockchain-based financial solutions.