Ripple Labs’ Stablecoin Approved By New York Regulators
Brad Garlinghouse, the CEO of Ripple Labs has confirmed on December 10 that the New York Department of Financial Services (NYDFS) has given approval for their RLUSD stablecoin. In the light of the current state of the crypto market, this might prove to be a tectonic change in the making. Here we will examine if Ripple can prove to be a game-worthy rival to Tether and Circle and how this is going to affect the wider picture.
An Upward Path for the Market
Currently, the stablecoin market is at a very good position. With around $192 billion of market value, it was a question of time when a new competitor was going to enter the fray. Economic and political prospects for crypto in the near future are looking good, which is attracting many investors. Bitcoin has peaked recently, especially after the nomination of a potential new US Securities and Exchange Commission head. And it’s not only BTC that’s been soaring high, the whole market is on the rise.
There has been a massive increase in new users joining the crypto trading activities. This, unfortunately, also means falling for a lot of unsafe practices that come from using fraudulent apps and marketplaces. Trading and storing in a safe and easy way calls for a secure and interoperable cryptocurrency wallet iPhone app or physical storage users can keep offline. The bull market is always an exciting time to jump in, but it is also an opportunity for scammers to take advantage of the uninformed.
The Rocky Road of Regulations
A significant uptick on the amount of money and people in the game is also a call for more security measures. This, in fact, is why the NYDFS approval has taken a bit longer than expected. Ripple Labs CEO Brad Garlinghouse said that they are committed to strict adherence to New York’s state regulations. However, now that RLUSD has been greenlit, we can expect new announcements soon. The company has warned to steer clear of news that don’t come directly from them, as they are going to be the first ones announcing their future partner and exchange listings. New York is already mentioned as the best state for crypto careers, so this comes as another piece of good news for blockchain enthusiasts.
The big question for Ripple stablecoin in the next year will be if they are able to challenge Tether’s dominance on the market. The early testing with ETH and XRP Ledger has proven to be a success so far. Keyrock and B2C2 have pledged to give RLUSD the necessary liquidity support in the markets, while the number of exchanges joining the list of partners is steadily growing with some of the best names in the game already there (Bitstamp, Independent Reserve, Uphold, Moonpay, etc.)
Future Shines Bright
The executives deem that there is a very bright future for this stablecoin. There were even mentions of a $2 trillion goal for market capitalization in the next three years. Ripple Labs have been very open about their goals to fill the gaps in the institutional interest in crypto. With the upcoming changes in the SEC and their possible policy change on the topic, these goals don’t necessarily seem too ambitious. XRP’s trading volumes have been on the rise, and the ratio over BTC has had a massive increase in the last quarter.
Time will yet tell, but there are strong indications that the stablecoin scene will have a strong new contender in Ripple Labs and their RLUSD. 2025 will certainly bring a lot of turbulent changes, especially with the new head of SEC. There is no doubt that crypto enthusiasts all over the US will be refreshing their apps daily to check on further developments.