XRP Climbs 8% Following NYDFS Approval for Ripple’s RLUSD Stablecoin

Ripple XRP

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated: 

December 10, 2024

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Ripple’s XRP jumped 8% on Wednesday after the NYDFS, New York’s top crypto regulator, granted final approval for its RLUSD stablecoin.

This approval allows Ripple to launch RLUSD publicly, positioning it as a key player in New York’s regulated digital finance market and expanding its role in the global stablecoin ecosystem.

XRP last rose 8.3% to $2.33, and is up 70% in the last two weeks.

Ripple CEO Brad Garlinghouse announced the approval in an X post late Tuesday, adding that Ripple will officially announce RLUSD’s launch once it becomes available on exchanges.

Ripple’s RLUSD Approval Marks Strategic Shift Toward Regulated Stablecoin Market

Ripple had initially set its sights on a potential launch date of Dec. 4, but the company did not receive the final approval in time.

RLUSD marks a strategic shift to offer customers a stable, regulated digital asset, reducing exposure to XRP’s volatility and regulatory challenges. This approval puts Ripple in direct competition with U.S. stablecoin leaders like Circle, Paxos, and Gemini, operating under New York’s strict regulations. The NYDFS, known for its high standards, enforces strict rules on transparency, security and consumer protection.

Ripple designed RLUSD to maintain a 1:1 peg to the US dollar. The stablecoin operates on the XRP Ledger and Ethereum blockchains, ensuring compatibility with existing financial systems and improving digital transaction efficiency. By offering RLUSD alongside XRP, Ripple aims to strengthen its remittance and settlement services.

RLUSD Could Boost XRP’s Utility, Liquidity and Price Growth: Analyst

Ryan Lee, chief analyst at Bitget Research, said that Ripple’s introduction of RLUSD could significantly enhance XRP’s utility and liquidity.

“By increasing transaction volumes and demand for XRP, RLUSD may play a pivotal role in supporting price growth. Additionally, Ripple’s ongoing adoption for cross-border payments continues to bolster market sentiment,” he said.

“Looking ahead to 2025, XRP’s price projections range broadly, with an average forecast between $1.8 and $8.4, and some optimistic scenarios suggesting peaks above $10. This outlook hinges on increased adoption and a resolution to regulatory hurdles. RLUSD’s adoption as a key transaction tool could further solidify XRP’s role in the financial ecosystem.”

“That said, broader crypto market trends, particularly Bitcoin’s performance, remain significant factors influencing XRP’s price trajectory.”