Ripple’s Stablecoin Approval Drives 10% XRP Rally, CEO Garlinghouse Comments

Ripple’s RLUSD Stablecoin Gains NYDFS Approval, XRP Price Spikes

Ripple has taken a major step toward launching its RLUSD stablecoin, currently in beta testing on Ethereum and the XRP Ledger (XRPL), with regulatory approval now secured from the New York Department of Financial Services (NYDFS).

“Big news today…we’ve obtained NYDFS approval for RLUSD! Listings with exchanges and partners are imminent,” Ripple CEO Brad Garlinghouse announced on X (formerly Twitter).

The announcement sent XRP soaring by 10%, erasing earlier losses and leading the crypto market rebound. Over the past 24 hours, XRP climbed 6.8%, significantly outperforming both bitcoin (BTC) and the broader CoinDesk 20 Index.

Ripple’s Play for Stablecoin Market Dominance

Ripple revealed its RLUSD stablecoin initiative in April, signaling its entry into a market largely dominated by Tether (USDT) and Circle’s USDC. Backed by short-term U.S. government bonds, RLUSD is designed to address the growing demand for stablecoins, which serve as a critical tool for global payments and blockchain-based financial activities.

With the stablecoin market nearing $200 billion and projected to scale to trillions, Ripple aims to use its established payments network to compete effectively. “RLUSD will strengthen Ripple’s position in tokenizing real-world assets and facilitating seamless payments,” said Ripple President Monica Long during an interview last month.

Testing Phase and Next Steps

RLUSD is undergoing beta testing on Ethereum and XRPL, with the company describing it as “ready to deploy” pending regulatory approval. Following the NYDFS green light, Ripple is set to roll out RLUSD for broader adoption.

Blockchain analytics firm CryptoQuant reports $41.7 million worth of RLUSD on Ethereum and $10.4 million on XRPL, indicating strong early demand.

As Ripple readies RLUSD for full-scale deployment, the stablecoin’s approval marks a significant milestone, potentially redefining the company’s role in the digital payments landscape while bolstering XRP’s market performance.