On Tuesday, Ripple’s CEO Brad Garlinghouse announced that the New York State Department of Financial Services (NYSDFS) has officially approved the launch of the company’s first stablecoin, RLUSD.
Ripple Prepares to Enter the Stablecoin Arena
With the introduction of RLUSD, Ripple aims to offer a stable option for customers interested in digital currencies while mitigating the fluctuations that typically accompany its main asset, XRP. This endorsement represents a calculated step for Ripple as it aims to expand its product range and deliver a trustworthy digital currency solution to clients.
To function effectively within New York’s regulatory framework, Ripple is expected to pursue a limited-purpose trust charter. This will enable the firm to provide specific digital asset services without facing the complexities of traditional banking regulations.
Additionally, the NYDFS issues a BitLicense, which permits exchanges like Coinbase and Robinhood to facilitate cryptocurrency trading and custody services.
Ripple’s move into the stablecoin sector comes as competitors like Paxos and Gemini have already secured regulatory approval for their respective stablecoins, PAX and GUSD.
Keith Grossman, president of Enterprise at MoonPay, expressed optimism regarding Ripple’s market entry, highlighting the necessity of “well-capitalized, highly regulated players” in the evolving global financial landscape.
Garlinghouse also noted that Ripple will soon announce exchange and partner listings for the stablecoin, with further information released directly to the public once RLUSD is operational.
Garlinghouse Advocates for Clearer Crypto Regulations
Garlinghouse’s announcement follows his recent appearance on CBS’s “60 Minutes,” where he pushed for more explicit regulatory guidelines in the cryptocurrency field.
The CEO stressed the crucial need for “clear rules of the road” to ensure the United States remains a leader in the cryptocurrency space and to discourage the industry from relocating to regions with less stringent protections. “We’ve asked to be regulated. “Just give us clear rules of the road,” Garlinghouse emphasized.
During his interview, Garlinghouse also commented on the current political climate, specifically President-elect Donald Trump’s fluctuating views on Bitcoin. He humorously remarked, “Whether or not it’s a conflict of interest, the voters have knowingly said we want this person to be our president.”
Garlinghouse commended bipartisan efforts in the US Congress, particularly the Fit 21 bill, which he views as a significant advancement towards achieving a balanced regulatory framework.
This proposed legislation aims to reassign some regulatory duties from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC), potentially alleviating the regulatory load for cryptocurrency firms.
Addressing the ongoing XRP litigation, Garlinghouse briefly countered allegations claiming that Ripple’s XRP sales amounted to the sale of unregistered securities. He confidently asserted, “I believe I am quite knowledgeable about what constitutes security. So I never considered the notion that XRP may be a security.”
As of the time of reporting, XRP is trading at $2.26, reflecting a 12% decline over the past week, following a multi-year peak of $2.91 on December 3.
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