Ripple is preparing to launch the RLUSD stablecoin in early December, after receiving approval from the New York Department of Financial Services (NYDFS), according to information from Fox Business.
It is known that Ripple has completed the final preparation steps for the issuance of the RLUSD stablecoin and is only awaiting the official decision from the NYDFS to officially launch it on December 4, 2024. Once approved, Ripple will be allowed to provide RLUSD to individuals and institutions within the state of New York.
The RLUSD stablecoin was first announced by Ripple in April this year and has been in the testing phase since August. RLUSD will be issued on two blockchain platforms, the XRP Ledger and Ethereum, marking a new effort by Ripple to expand its business beyond the field of blockchain-based payment and financial transactions as it has done in the past.
=> Read more: Ripple Announces Plan to Launch RLUSD Stablecoin
Ripple describes RLUSD as a tool that helps users make fast payment transactions and USD conversions at low fees, complementing the company's flagship currency XRP. In addition, the RLUSD stablecoin will be fully collateralized by the US dollar and equivalent valuable assets, such as US Treasury bills, and can be converted into cash at any time. The RLUSD model is similar to other traditional stablecoins like Tether's USDT or Circle's USDC.
Ripple will also use Axelar's cross-chain money transfer service to support the conversion of stablecoins between blockchains. The initial partners integrating RLUSD at launch will include Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish.
In mid-2024, Ripple secured an important legal victory in the ongoing lawsuit since 2020 with the US Securities and Exchange Commission (SEC). The US court ruled that the XRP token is not a security, rather than being considered a security as alleged by the SEC, and only had to pay a fine of $125 million. Although the SEC has appealed, with the inauguration of US President Donald Trump and the reduced legal pressures on the industry, along with the departure of SEC Chairman Gary Gensler, the likelihood of the SEC continuing the lawsuit is decreasing.
