Ripple’s RLUSD Approved by Regulators, XRP Price Surges and Market Correction Ensues
Ripple’s RLUSD stablecoin has officially gained regulatory approval from the New York Department of Financial Services (NYDFS), exciting XRP investors. CEO Brad Garlinghouse shared the news on social media, announcing the approval and hinting at upcoming exchange and partner listings.
After the approval news broke, XRP experienced a 10% spike in its price, only to later drop along with the broader market, falling below $2. Despite this initial dip, XRP has since rebounded and is now up nearly 10% over a 24-hour period.
In a similar fashion, Bitcoin also saw fluctuations, dropping to $94K before climbing back to $97K. However, Bitcoin’s increase was much more modest, at just over 1%, compared to XRP’s significant growth.
The approval of RLUSD comes after Ripple recently announced a delay in the launch of its stablecoin, citing regulatory requirements as the reason for the holdup. Despite speculation and anticipation, the rollout did not happen as expected, but Ripple assured its community that updates will be shared as soon as final approval is secured.
RLUSD is designed to be 100% backed by USD deposits, short-term US government treasuries, and other cash equivalents, positioning it as an enterprise-grade and compliance-focused stablecoin. The stablecoin market is projected to expand significantly, with RLUSD joining the ranks of USD-backed stablecoins as a key player.
Several prominent platforms, including Uphold, Bistamp, MoonPay, Independent Reserve, CoinMENA, and Bullish, have committed to offering RLUSD. Additionally, market makers such as B2C2 and Keyrock will support the liquidity of RLUSD, ensuring a smooth and robust trading experience.
In other news, Brad Garlinghouse’s recent appearance on CBS’s 60 Minutes sparked controversy when the Ripple CEO highlighted the show’s omission of significant information regarding XRP’s legal status. Despite spending millions in legal battles with the SEC, Garlinghouse emphasized that a Federal Judge had ruled in favor of XRP not being classified as a security, a crucial detail left out of the interview.
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