Ripple has received final approval from New York regulators to launch its RLUSD stablecoin, marking its entry into the $200 billion global liquidity market.
Ripple CEO Brad Garlinghouse announced that the New York Department of Financial Services has granted the regulatory green light for RLUSD, a stablecoin redeemable 1:1 for U.S. dollars. “When RLUSD is live, you’ll hear it from Ripple first,” Garlinghouse said, likely as a warning against scammers and phishing campaigns.
Garlinghouse first hinted at Ripple’s entry into the stablecoin market—dominated by Tether (USDT) and Circle (USDC)—in mid-2024, suggesting that shifting political dynamics would encourage new entrants like Ripple.
By August, RLUSD testing was underway on Ethereum and the XRP Ledger. Rippled announced forthcoming RLUSD availability on platforms like Uphold, Bitstamp, and Bullish weeks later in October.
RLUSD progress lulled momentarily as Ripple engaged regulators to bring its stablecoin to market compliantly. On Dec. 6, Ripple CTO David Schwartz said RLUSD would likely launch by year’s end, which was in 21 days at reporting time.
The stablecoin could compete with market incumbents like USDT and USDC, both of which already boast billions in market cap and circulating supply.
RLUSD may also face competition from state-issued stable tokens, as Wyoming has moved toward launching its own stablecoin. Speaking with crypto.news, Stabolut CEO Enoko Knörr suggested that more states might follow Wyoming’s lead to stay ahead of federal policymakers.
Growing stablecoin development could herald heightened optimism for regulations as well. A Republican-backed stablecoin bill advanced out of the House Financial Services Committee but has yet to be voted on by the full house.
Knörr believes stablecoin laws could benefit both existing players and new market operators, depending on who can adapt to rules and achieve compliance.
Incumbents with established infrastructure and trust, such as Circle, may gain a competitive advantage by leveraging their existing market position to navigate regulations effectively. Meanwhile, new entrants like Ripple could seize opportunities to innovate and adapt quickly within the regulatory landscape, potentially carving out new niches. Ultimately, the benefits will accrue to those who embrace regulation as a pathway to legitimacy and broader adoption.
Enoko Knörr, Stabolut CEO
