Ripple’s RLUSD Stablecoin: Ready for Launch, Waiting on Regulatory Approval

Ripple’s RLUSD Stablecoin: Progress and Pending Approval

Ripple’s much-anticipated stablecoin, RLUSD, is one step closer to launching—though it’s still waiting on the green light from regulators. Here’s what we know so far about the project, its exchange partners, and its potential to reshape the stablecoin landscape.

The Road to RLUSD

In April 2024, Ripple dropped a bombshell announcement: the company would be introducing a new stablecoin, pegged 1:1 to the US dollar. Fast forward a few months, and Ripple unveiled the name—RLUSD—confirming it would be available on both the XRP Ledger (XRPL) and Ethereum.

August brought us a crucial milestone: Ripple began beta testing the stablecoin, with a clear message: RLUSD won’t be available for trading until it receives the necessary regulatory approvals.

This is where things stand now. Ripple has lined up a host of prominent exchange partners, including Bitstamp, Bitso, Uphold, Bullish, CoinMENA, Independent Reserve, and MoonPay. These are the firms that will help Ripple bring RLUSD to market once the regulatory hurdles are cleared.

All Eyes on the NYDFS

In a recent interview with CNBC, Ripple President Monica Long shed light on the project’s current status. Long emphasized that the Ripple team is “operationally ready” to launch RLUSD. The only remaining hurdle? Approval from the New York Department of Financial Services (NYDFS).

While the team waits for the regulatory go-ahead, Ripple’s vision for the future of stablecoins is becoming clearer. Long sees the total market cap of stablecoins expanding dramatically in the coming years, projecting that it could balloon from its current $180 billion to over $3 trillion. The key driver of this growth? Demand for stablecoins in payments, a sector that’s rapidly gaining traction.

But that’s not all. Long also sees a future where stablecoins aren’t just pegged to the US dollar. In fact, she envisions a scenario where stablecoins become increasingly tied to other fiat currencies like the euro, the yen, and beyond, as global markets look to diversify away from the dollar.

A New Chapter for Stablecoins

As Ripple waits for regulatory approval, RLUSD is poised to enter a rapidly evolving stablecoin market. The partnership with major exchanges suggests that RLUSD could hit the ground running, positioning itself as a major player in the stablecoin space.

The question now is not if, but when RLUSD will be available for trading. And as the stablecoin market continues to grow, Ripple’s RLUSD could very well be part of the next wave of financial innovation—provided it gets the NYDFS seal of approval. Stay tuned.

USDT Market Cap, Source: CoinGecko

Circle’s USDC comes second. Its current market cap is around $37 billion, far less than the peak of $56 billion observed in June 2022.

The rest of the stablecoins, whose capitalization has crossed the $1 billion milestone, include USDS, DAI, USDE, and FDUSD.