- Ripple has secured partnerships with exchanges like Bitstamp, Bitso, and Uphold for the launch of RLUSD
- The stablecoin, RLUSD, is pending approval from the New York Department of Financial Services
- Ripple aims to strengthen its position in the regulated U.S. crypto market by offering a dollar-pegged stablecoin
Ripple Labs is set to launch RLUSD, its USD-backed stablecoin, on Wednesday, with approval from the New York Department of Financial Services (NYDFS) expected to be granted. With key partnerships secured with major exchanges, Ripple is prepared to distribute RLUSD globally upon its release. This move marks Ripple’s strategic entry into the competitive stablecoin market, positioning it alongside established players like Circle and Paxos.
Strategic Partnerships Enable Global Distribution
Ripple began testing its stablecoin in April and has since achieved partnerships with exchanges including Bitstamp, Bitso, and Uphold, to ensure that RLUSD is widely accessible upon its launch. Monica Long, President of Ripple Labs, told CoinDesk that Ripple is “operationally ready,” with the final hurdle being regulatory approval. These partnerships not only help with distribution but also bolster Ripple’s efforts to meet the demand for stable and reliable digital currencies in an evolving crypto landscape.
Securing approval from the NYDFS, a regulatory authority known for its rigorous standards, would be a significant milestone for Ripple. A successful launch would position Ripple in direct competition with stablecoin giants such as Circle (USDC) and Paxos (USDP) at a time when other main players, such as Tether, are having to cut back in order to meet European regulations.
David Schwartz, Ripple’s Chief Technology Officer, also commented on the launch:
This stablecoin is not just a step forward for Ripple but for the broader adoption of blockchain technology in finance.
Ripple’s Evolving Role in Digital Finance
The introduction of RLUSD could reshape the role of XRP, Ripple’s native token, which has traditionally been used for cross-border payments. By providing a stable alternative, RLUSD may attract new users while offering an additional tool for Ripple’s existing ecosystem. This comes as Ripple continues to face regulatory scrutiny over XRP, adding another layer of complexity to its market strategy.
Ripple’s entry into the stablecoin market is a bold move that could redefine its position within the crypto industry, particularly as stablecoins gain traction in regulated markets.
