On Tuesday, Ripple CEO Brad Garlinghouse revealed that the New York State Department of Financial Services (NYSDFS) has granted final approval for the firm’s inaugural stablecoin, RLUSD.
Ripple Set To Enter Stablecoin Market
With the release of RLUSD, Ripple hopes to provide a reliable option for clients interested in digital currencies while limiting the volatility associated with its flagship asset, XRP. The certification is a strategic move for Ripple, which strives to broaden its offerings and provide customers with a dependable digital currency choice.
To operate efficiently in New York’s regulatory climate, Ripple is likely to obtain a limited purpose trust charter. This charter will allow the organization to provide certain digital asset-related services without the complications associated with standard banking laws.
In addition, the NYDFS issues a BitLicense, allowing exchanges such as Coinbase and Robinhood to provide cryptocurrency trading and custody services.
Ripple’s entry into the stablecoin market comes as other companies, such as Paxos and Gemini, have already secured regulatory approval for their stablecoins, PAX and GUSD, respectively.
Keith Grossman, president of Enterprise at MoonPay, expressed confidence about Ripple’s entry into the market, underlining the importance of “well-capitalized, highly regulated players” in the changing global financial scene.
Garlinghouse further stated that exchange and partner listings for the new stablecoin will be released soon, and that the public will be notified directly by Ripple when RLUSD goes online.
Garlinghouse Calls For Clear Crypto Regulations
Garlinghouse’s announcement comes after his recent appearance on CBS’s “60 Minutes,” where he argued for clearer regulatory restrictions in the crypto industry.
The executive emphasized the significance of having “clear rules of the road” to maintain the United States’ leadership in the cryptocurrency area and prevent the industry from migrating to jurisdictions with weaker protections. “We’ve asked to be regulated. “Just give us clear rules of the road,” Garlinghouse said.
In his interview, Garlinghouse also discussed the current political scene, namely President-elect Donald Trump’s shifting stance on Bitcoin. He joked: “Whether or not it’s a conflict of interest, the voters have knowingly said we want this person to be our president.”
Garlinghouse also praised bipartisan actions in the US Congress, particularly the Fit 21 bill, which he sees as an important step toward a balanced regulatory environment.
This legislation seeks to transfer some regulatory functions from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC), potentially reducing the regulatory burden for cryptocurrency businesses.
Regarding the ongoing XRP case, Garlinghouse responded briefly to charges that Ripple’s XRP sales constituted the sale of unregistered securities. He boldly stated, “I believe I am quite knowledgeable about what constitutes security. So I never considered the notion that XRP may be a security.”
At the time of writing, XRP is trading at $2.26, down 12% in just seven days after reaching a multi-year high of $2.91 on December 3.
Featured image from DALL-E, chart from TradingView.com