Tanahub.com — The crypto giant behind XRP, Ripple Labs, is set to launch a new stablecoin called Ripple USD (RLUSD) after reportedly receiving approval from the New York Department of Financial Services (NYDFS). According to a Fox Business report, the stablecoin is scheduled to launch on December 4, local time.
Similar to other stablecoins, RLUSD is an overcollateralized stablecoin pegged to the US dollar. With the NYDFS approval, Ripple can legally offer RLUSD as an alternative product alongside XRP, its flagship asset.
JUST IN🚨 9,999,700 #RLUSD Minted At RLUSD Treasury #XRP Ledger 👀👀 pic.twitter.com/jHBEpm3Yne
— XRP CAPTAIN (@UniverseTwenty) December 2, 2024
The issuance of RLUSD comes as Ripple faces ongoing litigation with the Securities and Exchange Commission (SEC). The case, which accuses XRP of being an unregistered security, is currently under appeal. However, it could potentially be dropped if Donald Trump, set to assume the US presidency in January, appoints new leadership at the SEC.
Ripple first announced plans to launch RLUSD in April. To prepare for the stablecoin, Ripple acquired Standard Custody & Trust Company in June, a company licensed by the NYDFS to act as a custodian for crypto assets. Standard Custody will serve as the issuer of RLUSD following regulatory approval.
RLUSD underwent testing in August on the XRP Ledger and Ethereum networks. Ripple also plans to expand the stablecoin’s use to other blockchains.
Ripple has partnered with several crypto exchanges, including Uphold, Bitstamp, Bitso, MoonPay, and Bullish, to ensure RLUSD is widely accessible. As a commitment to transparency, Ripple plans to conduct regular audits of the stablecoin reserves and publish monthly reports.