Legitimate! RLUSD Approved By Regulators, Good News For XRP Army

The RLUSD stablecoin was approved by the New York Ministry of Financial Services. (Photo; Doc. TheCryptoBasic)

JAKARTA - The blockchain-based cross-border payment company Ripple (XRP) managed to create a new history in the stablecoin sector. This is because Ripple recently received final approval from the New York Department of Financial Services (NYDFS) for their latest stablecoin, Ripple USD (RLUSD).

This positive news was announced directly by Ripple CEO Brad Garlinghouse through X's social media account on Wednesday, December 11, 2024. This achievement marks the beginning of a major change in the stablecoin sector which is increasingly regulated.

In his tweet, Garlinghouse revealed, "We officially got the NYDFS approval for $RLUSD!" Approved by RLUSD by regulators paved the way for Ripple to launch a fully supported stablecoin by the US dollar. RLUSD is expected to be able to compete with other major stablecoins in the market.

This just in…we have final approval from @NYDFS for $RLUSD! Exchange and partner listings will be live soon – and reminder: when RLUSD is live, you’ll hear it from @Ripple first.

— Brad Garlinghouse (@bgarlinghouse) December 10, 2024

This just in...we have final approval from @NYDFS for $RLUSD! Exchange and partner listings will be live soon and reminder: when RLUSD is live, you'll hear it from @Ripple first.

For your information, the value of RLUSD stablecoins is set at 1:1 with a US dollar. This new product is designed to be a more stable alternative amid the dominance of two large stablecoins that dominate the crypto market, namely USDC Circle and USDT Tether.

Currently USDC has a market capitalization of around US$40 billion (Rp640 trillion). Meanwhile, USDT, which leads the market in this sector, has a market capitalization of more than US$138 billion (Rp2,208 trillion).

What distinguishes RLUSD from other stablecoins is its reserve structure supported by real assets, such as US dollar deposits, US government short-term bonds, and other equivalent cash.

According to CoinSpeaker, this shows Ripple's conservative approach in creating safer products, given Terra UST's algorithmic stablecoin failure history that collapsed in 2022 and caused losses of more than $40 billion.

Now Ripple is ready to launch RLUSD on the XRP Ledger and Ethereum blockchains. Not only that, other blockchain developers such as Charles Hoskinson showed his interest in RLUSD. In an interview, he hopes RLUSD can be integrated into the Cardano network.

It didn't stop there, TRON founder Justin Sun also expressed his interest in RLUSD. Sun expressed interest through social media X on December 4. He wrote: When $XRP is on the $TRX TRON network.

When $XRP RLUSD on Tron $TRX

— H.E. Justin Sun 🍌 (@justinsuntron) December 4, 2024

When $XRP RLUSD on Tron $TRX

Meanwhile, the price of XRP was also boosted. Based on CoinGecko data, XRP price performance began to recover with an increase of 4.6% in the last 24 hours. At the time of writing on Wednesday 11 December, XRP was trading at the level of IDR 36,500 per coin.