Ripple Secures NYDFS Approval for RLUSD Stablecoin: XRP Price Up 9%

Ripple Labs has received regulatory approval from the New York Department of Financial Services (NYDFS) for its RLUSD stablecoin, marking a significant step forward in its cryptocurrency market expansion.

The new stablecoin, pegged to the US dollar, forms part of Ripple’s strategy to strengthen its ecosystem and capitalize on the growing demand for stablecoins, which analysts predict will reach a $2 trillion market cap by 2028.

Regulatory Approval Paves The Way for RLUSD

Ripple CEO Brad Garlinghouse Tuesday announced the approval on X (formerly Twitter), confirming that RLUSD listings on exchanges and partner platforms will follow soon.

"When RLUSD is live, you'll hear it from Ripple first," Garlinghouse stated.

The approval from NYDFS ensures that the stablecoin complies with stringent regulatory standards, allowing Ripple to operate within New York’s robust financial framework.

RLUSD has already undergone testing on the XRP Ledger and Ethereum blockchain, setting the stage for its imminent launch.

Also Read: Microsoft Shareholders Reject Proposal To Explore Bitcoin Investment

Ripple's Broader Growth Driving XRP Demand

Ripple’s approval for RLUSD comes as the XRP/USD token continues to experience a significant rally.

XRP, now the fourth-largest cryptocurrency by market cap, has seen a year-to-date surge of 286%, significantly outperforming both Bitcoin BTC/USD and Ethereum ETH/USD. XRP is up 9% over the past hour at the time of writing.

Shivam Thakral, CEO of BuyUcoin, attributes the recent 40% price surge in XRP to a more favorable regulatory climate under the Trump administration and expectations of a Federal Reserve interest rate cut.

“Investor confidence is buoyed by Ripple's ecosystem expansion and market inflows,” Thakral added.

Ryan Lee, Chief Analyst at Bitget Research, emphasized the impact of Ripple's ongoing legal battle with the SEC on market sentiment.

“Any favorable developments, such as Gary Gensler’s resignation or a settlement, could further drive XRP's price,” Lee noted.

Market analyst Alex Kuptsikevich of FxPro highlighted XRP’s stabilization at $2.6, a price level not seen since 2018. While he cautioned about potential corrections, Kuptsikevich pointed to the possibility of XRP-related ETFs as a future catalyst for growth.

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