Ripple’s stablecoin is gearing up for its highly anticipated mainnet launch, with FOX Business revealing its potential launch date.
FOX Business journalist Eleanor Terrett reported that the New York Department of Financial Service (NYDFS) had signaled its intention to approve RLUSD for its mainnet launch.
Citing sources familiar with the matter, the journalist claimed that the San Francisco-based company is targeting December 4 for the mainnet launch of the stablecoin.
🚨SCOOP: Ripple poised for New York approval of stablecoin, set to enter regulated US crypto market
People close to the matter say the @NYDFS has indicated to @Ripple it will approve $RLUSD and the company is eyeing a possible launch date of Dec. 4th.https://t.co/PwuvIsVAFz
— Eleanor Terrett (@EleanorTerrett) November 29, 2024
Recall that Ripple introduced RLUSD in April 2024 and proceeded with its beta launch in August, rolling out the stablecoin on XRP Ledger (XRPL) and Ethereum. Ever since, the stablecoin has been in beta, with no precise date for a mainnet launch.
The wait for RLUSD’s mainnet launch might end soon, as sources claim Ripple is eyeing December 4 as the possible launch date following NYDFS’ approval. At press time, neither Ripple nor NYDFS has issued an official statement backing this claim.
RLUSD Use Case
For context, Ripple focuses on leveraging blockchain technology to offer faster and cheaper cross-border settlements for financial institutions. Interestingly, the company uses XRPL’s native token, XRP, as a bridge currency between two fiats to settle these transactions.
However, the token is embroiled in an intense legal battle between the U.S. SEC and Ripple. Even though a federal court declared XRP a non-security, the continuation of the case in the Court of Appeals for the Second Circuit still puts the token under regulatory scrutiny.
The anticipated launch of RLUSD could serve as an alternative to XRP across Ripple’s payment solutions. Financial institutions seeking to utilize Ripple’s payment solution without exposure to regulatory uncertainty and volatility can choose RLUSD instead of XRP.
Furthermore, customers can also adopt the stablecoin as a store of value upon its mainnet launch. Once approved, RLUSD would strive to dominate the stablecoin market, valued at $190 billion, rivaling top players like Tether and Circle.
Ripple Navigates NYDFS Strict Regulation
In the absence of stablecoin regulation at the federal level, Ripple pursued regulatory approval for RLUSD through the state level. The NYDFS adopts a strict approach to regulating cryptos, including stablecoins. Companies seeking to launch stablecoins within its jurisdiction must meet certain conditions, including obtaining a limited-purpose trust charter.
Ripple already met this requirement by acquiring the NYDFS-regulated entity Standard Custody & Trust Company in June. This move also helped to accelerate NYDFS’ approval of the stablecoin, according to sources with direct knowledge of the matter. Upon approval, Standard Custody will issue RLUSD to the stablecoin’s exchange partners, including Moonpay and Uphold.
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