Ripple has announced it will launch the RLUSD, a dollar-pegged stablecoin, after receiving approval from the NYDFS.
Powered by XRP, the launch will allow RLUSD to be integrated into US global financial markets. This stablecoin aims to enhance cross-border payments, a common use case for stablecoins as many private companies have ramped up use cases regarding stablecoin cross-border activity.
Brad Garlinghouse, CEO of Ripple, commented: “We’re excited to introduce RLUSD, which combines the legal clarity and scalability of XRP with a more compliant, transparent, and efficient solution for global payments.
“With approval from New York state regulators, RLUSD is now ready for US financial institutions to integrate, bringing them a secure and scalable solution for cross-border payments.”
According to Ripple, the RLUSD platform is backed by cash and short-term cash equivalents, which are checked through third-party audits to ensure trust and transparency.
The company also believes that XRP’s sustainable approach makes it stand out from competitors, allegedly outperforming traditional proof-of-work cryptocurrencies like Bitcoin.
On top of this, now being approved by the NYFDS and issued under a New York Trust Company Charter, Ripple asserts that it will guarantee rigorous oversight and regulation.
Stablecoins have been a standout area in payments this year, with the currency proving to be useful for banks. This is because it allows them to optimise liquidity and reduce capital requirements.
The speed of stablecoins, which is a key factor of blockchain-based payments, also makes it a suitable candidate for improving cross-border transactions as it is more favourable digital currency due to being tethered to a fiat currency, as opposed to bu
In October, Ripple joined the stablecoin goldrush, announcing several exchange partners, including Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA and Bullish.
