Ripple Readies for NY Approval: A Game-Changer for US Stablecoins!
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Big news in the world of crypto! New York’s top regulator is on the brink of approving a groundbreaking stablecoin from Ripple, the cross-border payment giant. According to exclusive insights from FOX Business, the New York Department of Financial Services (NYDFS) is ready to give Ripple the green light in the coming days.
If all goes as expected, Ripple is targeting a launch date of December 4 for its new stablecoin, RLUSD. This regulatory approval will not just elevate Ripple’s game but also solidify its position as a formidable force in New York’s regulated digital finance arena and the broader stablecoin landscape.
Officials from Ripple and NYDFS have yet to comment on this exciting development.
Ripple’s strategy revolves around its innovative payment platform, RippleNet, which utilizes blockchain technology to provide speedier, cost-effective, and more efficient cross-border payment solutions for banks and businesses—an alternative to the cumbersome SWIFT system. The spotlight is currently on Ripple’s native token, XRP, which acts as a bridge currency for these transactions. However, XRP’s future hangs in the balance as it faces scrutiny from the SEC, which argues in court that it’s an unregistered security.
With the case now in the appeals process and the crypto-friendly Trump Administration set to take office in January, speculations abound that the SEC’s case could soon be dropped. In the meantime, XRP has been facing wild price fluctuations, making the market wary of its next move.
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It’s worth noting that in 2020, XRP’s price plummeted over 50%, wiping out $16 billion from its market cap when the SEC accused Ripple of violating securities laws. For nearly four years now, XRP has traded mostly under $1, but the tide turned following Trump’s victory on November 5, igniting hopes that he will deliver on his promise to ease crypto regulations and position the U.S. as the “crypto capital of the planet.”
President-elect Donald Trump aims to position the U.S. as the “crypto capital of the planet.” (Reuters/Kevin Wurm/File Photo / Reuters Photos)
As of now, XRP is trading at an impressive $1.70, making it the fifth-largest cryptocurrency globally by market cap.
The launch of a regulated stablecoin will allow Ripple to provide a stable alternative to XRP, catering to those seeking the benefits of digital currencies without the associated volatility and regulatory risks. This strategic move will place Ripple head-to-head with established U.S. stablecoin players like Circle, Paxos, and Gemini.
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Stablecoins—digital currencies pegged to stable assets like the U.S. dollar—serve as a reliable store of value and a means of exchange for faster, more affordable transactions, especially in cross-border payments and remittances. The current stablecoin market is valued at around $190 billion, and with the Trump administration expected to implement favorable crypto regulations at the federal level, growth in this sector seems imminent.
The seal of the Securities and Exchange Commission hangs at their headquarters in Washington, D.C. (REUTERS/Jonathan Ernst/File Photo / Reuters Photos)
Currently, state-level regulations are the main pathway for businesses wanting to introduce stablecoins. The NYDFS sets a high bar for crypto regulation, ensuring that entities offering digital assets comply with anti-money laundering laws and consumer protection measures. By securing a limited purpose trust charter, Ripple can provide specific digital asset services while avoiding the full weight of traditional banking regulations. Stablecoin issuers like Paxos and Gemini have similarly aligned with the NYDFS, enabling them to offer PAX and GUSD stablecoins to New York residents.
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Ripple is teaming up with leading payment providers including Bitstamp, Moonpay, and Uphold for the much-anticipated launch of its stablecoin next week. Keith Grossman, president of Enterprise at MoonPay, stated, “For another well-capitalized, highly regulated player to enter into the global stablecoin marketplace—especially as MiCA regulation in Europe is about to be implemented—is a win-win. MoonPay is proud to provide access to RLUSD for our partners and customers on day one of Ripple’s launch.”
