Ripple Receives Approval for RLUSD Stablecoin from New York Regulators
Ripple CEO Brad Garlinghouse announced that New York State regulators have approved the company’s first stablecoin, RLUSD. The New York State Department of Financial Services (NYSDFS) granted this certification, marking a milestone for Ripple in the stablecoin market.
Ripple aims to make RLUSD a reliable digital currency option, reducing the price volatility associated with XRP. This initiative is part of Ripple's strategy to expand services while adapting to New York’s regulatory environment. The company plans to secure a limited-purpose trust charter for offering specific digital asset services without traditional banking regulations.
Additionally, Ripple will require a BitLicense, which allows crypto platforms like Coinbase and Robinhood to operate in the state. This approval aligns Ripple with regulated stablecoin providers such as Paxos (PAX) and Gemini (GUSD). Keith Grossman, president of Enterprise at MoonPay, supported Ripple’s market entry, emphasizing the role of well-regulated companies in transforming global finance.
Garlinghouse indicated that details about RLUSD’s launch, exchange listings, and partnerships will be announced soon, keeping the public informed directly by Ripple.
In a CBS “60 Minutes” interview, Garlinghouse stressed the need for clear regulatory guidelines to maintain U.S. leadership in the crypto sector. He warned that regulatory uncertainty could push the industry to jurisdictions with less oversight. Ripple has consistently called for transparent rules, urging policymakers to create a balanced regulatory framework.
Garlinghouse also discussed political developments, mentioning President-elect Donald Trump’s changing views on Bitcoin. He noted that voters were aware of potential conflicts of interest during his election. He praised bipartisan efforts in Congress, particularly the Fit 21 bill, which seeks to transfer some regulatory responsibilities from the SEC to the CFTC. This legislation aims to alleviate regulatory challenges for crypto businesses.
Regarding the ongoing lawsuit over XRP’s classification as a security, Garlinghouse stated he does not believe XRP qualifies as a security, dismissing the allegations as unfounded. Ripple's stablecoin approval represents a significant advancement in its mission to innovate responsibly within the evolving crypto landscape.