Ripple Seizes Opportunity in Stablecoin Market

Ripple, led by CEO Brad Garlinghouse, has secured final regulatory approval for its RLUSD stablecoin from NYDFS, positioning itself for a significant entry into the stablecoin market. Announced via a post on X, this milestone opens the door for RLUSD to be listed on major exchanges.

Ripple’s strategic move to launch RLUSD comes as part of its mission to challenge the dominance of leading stablecoins like Tether’s USDT and Circle’s USDC, which collectively control nearly $200 billion of the stablecoin market. Ripple has ambitious plans, projecting RLUSD to reach a market cap of $2 trillion by 2028.

RLUSD, a 1:1 US dollar-backed stablecoin, is backed by USD deposits, short-term US government treasuries, and other cash equivalents. Ripple began testing RLUSD on both the XRP Ledger and Ethereum mainnets in August, followed by partnerships with major exchanges such as Uphold, Bitstamp, Bitso, MoonPay, CoinMENA, and Bullish in October.

Ripple is leveraging both RLUSD and its native token XRP to enhance cross-border payment solutions, with a focus on institutional players. Following the approval, the price of XRP surged by 10%, climbing back to $2.34 after briefly falling below $2 for the first time since early December.

As Ripple solidifies its position in the stablecoin market, experts are optimistic about XRP potentially reaching the $5 threshold, especially given its current 31% dip from its all-time high of $3.40 set in January 2018.