XRP Soars 10% Following Ripple's Stablecoin Regulatory Green Light, Says CEO Garlinghouse
The approval is a crucial step toward launching the RLUSD token, which is presently in testing on Ethereum and XRP Ledger.
What to know:
- Ripple's U.S. dollar stablecoin has received "final approval" from the New York Department of Financial Services, as stated by CEO Brad Garlinghouse in a recent post.
- XRP, the digital currency associated with Ripple, experienced a 10% increase, surpassing the broader cryptocurrency market.
- The RLUSD token is currently in test mode on Ethereum and XRP Ledger with a supply of $52 million.
XRP, the token of the XRP Ledger network, surged on Tuesday afternoon following news from Ripple's CEO that the company's upcoming stablecoin gained regulatory approval from New York’s financial regulators.
"This just in... we have final approval from NYDFS for RLUSD! Exchange and partner listings will be live soon," Garlinghouse announced on X.
Translation: "This just in... we have final approval from NYDFS for RLUSD! Exchange and partner listings will be live soon," Garlinghouse announced on X.
XRP experienced a rally of 10% following this announcement, contributing to a general uptick in the cryptocurrency market, reversing earlier losses. The token was up 6.8% in the past 24 hours, outperforming Bitcoin (BTC) and the broader CoinDesk 20 Index.
Ripple earlier disclosed plans to penetrate the rapidly expanding stablecoin sector with its highly regulated, government bond-backed cryptocurrency. Stablecoins are becoming foundational in the crypto economy, particularly for global transactions, a key focus for Ripple. Tether (USDT) and Circle (USDC) are currently the dominant players in the nearly $200 billion stablecoin market. This sector is projected to grow into the trillions over the next few years, and Ripple aims to secure its share.
With RLUSD, Ripple intends to leverage its established relations in payment services among institutions and act as a key player in the tokenization of real-world assets, as per President Monica Long's statements to CoinDesk.
The RLUSD is being tested in beta stages on both the XRP Ledger and Ethereum networks. Long previously stated that the token was ready for operations, pending regulatory approval for its public release.
Presently, there are approximately $41.7 million worth of RLUSD tokens on Ethereum and $10.4 million on XRPL, according to data compiled by analytics firm CryptoQuant.
