[NEWS] Ripple's RLUSD approved by New York State Department of Financial Services

Brad Garlinghouse, CEO of Ripple, announced on the 11th that his company's stablecoin, RLUSD, has been approved by the New York State Department of Financial Services (NYDFS).

Garlinghouse said the stablecoin will soon be available to exchanges and partner companies. Ripple announced plans to enter the fast-growing stablecoin market in April this year through RLUSD, a US dollar-pegged stablecoin it developed.

RLUSD is 100% backed by US short-term government securities, US dollar deposits, and cash equivalents, and will be issued on the XRP Ledger and Ethereum (ETH) blockchains. It will also operate under a New York State trust company license.

In a research report last August, investment firm Bernstein predicted that the stablecoin market would grow to $2.8 trillion by 2028, and at the time of writing, it had already grown to over $200 billion.

USDT (Tether), issued by the US company Tether, is growing its share as the market expands. USDT is a stablecoin that accounts for about 65% of the stablecoin market in terms of total issuance, far ahead of its successors USDC (USD Coin) and DAI.

USDT is the pillar of liquidity in the entire cryptocurrency (virtual currency) market, and is widely used as a trading pair on major exchanges, and in some cases its 24-hour trading volume exceeds that of Bitcoin.

In addition, major payment company PayPal entered the cryptocurrency market with its own dollar-pegged stablecoin "PayPal USD (PYUSD)", but 24-hour trading volume is struggling with USDT's 34 trillion yen scale and PayPal USD's at around 1 billion yen.

If Ripple's global reach can be utilized to not only be used in the cryptocurrency industry, but also to spread in emerging countries where access to legal tender is difficult and countries with ongoing economic uncertainty, there is a great possibility that it will contribute to the field of stablecoins.

Reference: Mr. Garlinghouse X
Image: Shutterstock

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