The post Ripple Set to Launch RLUSD Stablecoin Amid Regulatory Challenges and Market Volatility appeared on BitcoinEthereumNews.com.

Ripple Labs is on the cusp of launching its regulated stablecoin, RLUSD, with New York Department of Financial Services (NYDFS) approval anticipated as early as December 4, 2024.  This development signals Ripple’s strategic entry into the highly regulated U.S. stablecoin market, but questions linger over its flagship token, XRP. Ripple has developed the RLUSD stablecoin to present a dependable substitute for XRP, which has experienced high volatility and regulatory scrutiny. Ongoing legal disputes with the U.S. Securities and Exchange Commission (SEC), which claims that XRP is an unregistered security, have caused the token’s value to vary considerably. The dispute is still pending, even though Ripple won a partial victory earlier this year, which makes XRP’s future even more dubious. Unlike XRP, RLUSD will be pegged to the U.S. dollar, offering stability for cross-border transactions. This positions RLUSD as a safer option for institutional clients seeking to minimize exposure to market swings and regulatory ambiguity. NYDFS, known for its stringent crypto regulations, is expected to greenlight RLUSD under a limited-purpose trust charter. This approval will enable Ripple to legally issue RLUSD in New York, a critical hub for digital finance. Ripple has previously secured compliance in the state through its acquisition of Standard Custody & Trust Company, an NYDFS-licensed custodian for digital assets. Source: X The stablecoin launch is a deliberate effort to strengthen Ripple’s position in the $190 billion stablecoin market, where it will face competitors like Circle’s USDC and Tether’s USDT. Partnerships with payment platforms such as Bitstamp, MoonPay, and Uphold are set to ensure RLUSD’s accessibility from day one. Ripple’s Broader Strategy Amid European Regulation The RLUSD launch comes at a critical juncture, as Europe prepares to implement the Markets in Cryptoassets (MiCA) regulations. Keith Grossman, president of enterprise at MoonPay, praised Ripple’s decision, saying, “For another well-capitalized,…

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Filed under: News - @ November 30, 2024 1:16 pm