New York regulators have given Ripple full authority to introduce its RLUSD stablecoin, allowing it to join the $200 billion global liquidity market.
The New York Department of Financial Services has given the regulatory approval for RLUSD. This stablecoin can be redeemed 1:1 for US dollars, according to a statement released by Ripple CEO Brad Garlinghouse.
“When RLUSD is live, you’ll hear it from Ripple first,” Garlinghouse said, likely as a warning against scammers and phishing campaigns.
Garlinghouse originally alluded to Ripple’s arrival in the stablecoin market, controlled by Circle and Tether, in the middle of 2024.
He said that changing political conditions would encourage new players like Ripple. Testing of RLUSD on Ethereum and the XRP Ledger had begun by August.
A few weeks later, in October, Rippled stated that RLUSD would soon be available on sites including Uphold, Bitstamp, and Bullish.
As Ripple worked with regulators to legally get its stablecoin onto the market, the RLUSD’s progress temporarily stalled. David Schwartz, CTO of Ripple, stated on December 6 that RLUSD would launch by the end of the year, 21 days prior to the time of this story.
The market leaders USDT and USDC, which both have billions in market capitalization and circulating supply, could be competitors of the stablecoin.
Since Wyoming has taken steps to introduce its stablecoin, state-issued stable tokens might also threaten RLUSD.
Enoko Knörr, CEO of Stabolut, stated that to keep ahead of federal policymakers, additional states may follow Wyoming’s example.
Increasing stablecoin development may also signal more hope for legislation. The House Financial Services Committee advanced a stablecoin bill supported by Republicans, but the entire house has not yet voted on it.
Depending on who can comply and adjust to the regulations, Knörr thinks stablecoin regulations could help both new and established market participants. Enoko Knörr, CEO of Stabolut:
Incumbents like Circle that have a well-established infrastructure and reputation can obtain a competitive edge by using their current market position to successfully negotiate rules. In the meantime, fresh players like Ripple might take advantage of chances to quickly develop and adjust to the regulatory environment, possibly establishing new markets. In the end, those who accept regulation as a means of gaining credibility and wider acceptance will profit.”
