According to the
Fox Business report, the New York Department of Financial Services (NYDFS), the highest cryptocurrency regulatory authority in New York, is about to approve the new stablecoin RLUSD issued by the cross-border payment company Ripple. The token XRP associated with Ripple Labs has surged 17% in the last 24 hours, surpassing BNB to become the fifth largest cryptocurrency by market capitalization.
Will RLUSD be approved?
In
April, Ripple CEO Brad Garlinghouse announced the company's entry into the stablecoin market, with the stablecoin named RLUSD, fully backed by US dollar deposits, short-term US Treasury bills, and other equivalent cash. The plan is to issue it this year based on the ERC-20 token standard, and support it on Ripple's XRP distributed ledger and Ethereum.
Ripple states that it is committed to regulatory compliance, with the company and its subsidiaries holding a New York BitLicense, money transmitter licenses in nearly 40 US states, a major payment institution license (MPI) from the Monetary Authority of Singapore (MAS), and a registration as a virtual asset service provider with the Central Bank of Ireland. Ripple also agreed to acquire Standard Custody this year, one of the few crypto companies that hold a New York state trust charter.
According to sources cited by Fox Business, the New York Department of Financial Services (NYDFS) has indicated to Ripple that it will approve the product, with the company eyeing a potential launch date of December 4. RLUSD will be positioned as a key participant in the regulated digital finance market in New York and the broader stablecoin ecosystem.
XRP surpasses BNB to become the fifth largest cryptocurrency
Ripple's core business revolves around its decentralized global payment network RippleNet, using blockchain technology to provide banks and enterprises with faster, cheaper, and more efficient cross-border payment solutions. It is touted as an alternative to the global banking settlement system SWIFT. Ripple's native token XRP serves as a bridge currency to settle these transactions, but the token is currently in regulatory limbo in the US, as the Securities and Exchange Commission (SEC) continues to argue in court that it is an unregistered security.
However, with the confirmation of Trump's return to the White House and the announcement of SEC Chairman Gary Gensler's departure in January next year, XRP has surged 245% in the past month, and yesterday it jumped 17% after the news broke, surpassing BNB to become the fifth largest cryptocurrency by market capitalization.
