Ripple CEO Brad Garlinghouse revealed on Tuesday that the New York State Department of Financial Services (NYSDFS) has given final approval to the company’s inaugural stablecoin, RLUSD.
Ripple is preparing to enter the stablecoin market
with Release RLUSDRipple hopes to provide a reliable option for customers interested in digital currencies while reducing the volatility associated with its flagship asset, XRP. The certification is a strategic move for Ripple, which is striving to expand its offerings and provide customers with a reliable digital currency choice.
To work efficiently in New York Organizational climateRipple is likely to obtain a limited-purpose trust charter. This charter will allow the organization to provide some services related to digital assets without the complexities associated with standard banking laws.
Additionally, NYDFS issues a BitLicense, allowing exchanges like Coinbase and Robinhood to provide cryptocurrency trading and custodial services.
Ripple’s entry into the stablecoin market comes at a time when other companies, such as Paxos and Gemini, have already received regulatory approval for their stablecoins, PAX and GUSD, respectively.
Keith Grossman, Head of Institutions at MoonPay, expressed confidence in Ripple’s entry into the market, stressing the importance of “well-capitalized and highly regulated players” in the changing global financial landscape.
Garlinghouse as well male Exchange and partner lists for the new stablecoin will be released soon, and the public will be notified directly by Ripple when RLUSD goes online.
Garlinghouse calls for clear regulations for cryptocurrencies
Garlinghouse’s announcement follows his latest announcement appearance On CBS’s “60 Minutes,” where he called for clearer regulatory restrictions on the cryptocurrency industry.
The executive stressed the importance of having “clear rules of the road” to maintain US leadership in crypto and prevent the industry from migrating to jurisdictions with weaker protections. “We asked to be organized. Just give us clear rules of the road,” Garlinghouse said.
In his interview, Garlinghouse also discussed the current political landscape, specifically the transformation of President-elect Donald Trump Position on Bitcoin. “Whether it was a conflict of interest or not, voters knowingly said we want this person to be our president,” he joked.
Garlinghouse also praised the bipartisan actions taken in the US Congress, especially the Fit 21 bill, which he sees as an important step towards a balanced regulatory environment.
This legislation seeks to move some Regulatory functions From the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC), which could reduce the regulatory burden on cryptocurrency companies.
Regarding the ongoing XRP issue, Garlinghouse briefly responded to accusations that Ripple’s XRP sales constitute a sale of XRP. Unregistered securities. “I think I’m quite aware of what constitutes security,” he said boldly. So I never considered the idea that XRP might serve as 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 of DALL-E, chart from TradingView.com