Amid claims that Ripple Labs is set to launch its RLUSD stablecoin this week, the firm has provided clarity on the issue.
American blockchain payments firm Ripple Labs Inc has issued a disclaimer regarding the launch of its RLUSD stablecoin. In a Wednesday X post, the firm reassured customers it did not plan to launch the RLUSD on the mainnet on December 4, as speculated.
Ripple explained it is working closely with the New York Department of Financial Services (NYDFS) to secure final approvals for the RLUSD launch. The company aims to ensure it complies with the necessary regulatory standards.
“We are fully committed to launching under the supervision of NYDFS and upholding the highest regulatory standards,” Ripple stated.
Notably, the NYDFS takes a stringent approach to regulating cryptocurrencies, including stablecoins. Firms seeking approval to launch a stablecoin within its jurisdiction must meet certain requirements, including acquiring a limited-purpose trust charter.
Meanwhile, Ripple’s statement comes after reports that the eagerly awaited stablecoin would launch on December 4. FOX Business reporter Eleanor Terret cited people familiar with the situation and said the NYDFS indicated intentions to approve RLUSD. She opined that Ripple targeted December 4 as the launch date.
Despite the delayed launch, Ripple has pledged commitment to make the RLUSD stablecoin available to the public. The firm also promised to keep users informed on the progress of the stablecoin launch. The eventual approval of RLUSD will position Ripple as a major player in New York’s regulated digital finance market and the stablecoin ecosystem.
Ripple officially unveiled its plans to launch the stablecoin in June. RLUSD is a 1:1 USD-pegged asset fully backed by USD deposits, short-term US Treasuries, and other cash equivalents.
By August, the stablecoin underwent beta testing on the Ethereum mainnet, XRP ledger, and Ripple’s decentralized blockchain. Ripple said introducing the RLUSD is anticipated to disrupt USDC USDC $1.00 24h volatility: 0.1% Market cap: $40.27 B Vol. 24h: $14.34 B and USDT USDT $1.00 24h volatility: 0.1% Market cap: $136.70 B Vol. 24h: $260.26 B , two dominant forces in the stablecoin market.
Over the years, Ripple has consistently focused on using blockchain technology to provide financial institutions with quicker and less expensive cross-border transactions. Essentially, Ripple leverages XRP, the native digital asset of the XRP Ledger, as a bridge currency to settle cross-border transactions.
XRP remains embroiled in a long-standing legal battle between Ripple and the US Securities and Exchange Commission (SEC). US Federal Judge Analisa Torres has ruled that XRP is non-security when traded on exchanges. However, the SEC has filed an appeal, and the continuation of the case in the Court of Appeals for the Second Circuit still puts XRP under legal scrutiny.
Therefore, the anticipated RLUSD stablecoin could serve as an alternative payment currency to XRP XRP $2.31 24h volatility: 1.7% Market cap: $132.13 B Vol. 24h: $15.19 B . Institutions seeking to use Ripple’s payment solution without exposure to regulatory uncertainty and volatility can choose RLUSD instead of XRP.
Notably, this is pending the time the legal battle will be over. Ripple’s executives have hinted that both XRP and RLUSD will complement each other in its grand push to revolutionize payments
Ultimately, users can also embrace the RLUSD as a store of value, similar to other top stablecoins like USDC and USDT.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
