by Jude Ayua

After over a week’s wait, Ripple received the New York Department of Financial Services’ (NYDFS) approval to launch its stablecoin, $RLUSD. Ripple initially planned to launch $RLUSD on 1 December 2024, while awaiting the NYDFS’s approval. Ripple’s Chief Executive Officer, Brad Garlinghouse confirmed the approval on X on 10 December.

“This just in…we have final approval from @NYDFS for $RLUSD! Exchange and partner listings will be live soon – and reminder: when RLUSD is live, you’ll hear it from @Ripple first.”

Read also: Ripple to launch USD-backed stablecoin, RLUSD.

$RLUSD is a 1:1 US dollar-backed stablecoin. Like Tether’s USDT, US dollar deposits, short-term US government treasuries, and related cash equivalents, will be $RLUSD’s backing structure. $RLUSD aims to penetrate the US crypto market and compete directly with Circle’s dominant coin, USDC. With a market cap of $41.3 billion as of the time of writing, USDC stands as the top two stablecoin globally

Read also: U.S SEC’s XRP lawsuit against Ripple finally over.

XRP’s price surge

Ripple’s cryptocurrency token, XRP, remained below a $1 price since the Securities and Commission (SEC)’s sued the company in 2020. XRP crossed $1 after President-elect Donald Trump’s victory in November 2024. $RLUSD’s approval further influenced XRP’s price, rising +4.98% to $2.33 in 24 hours from 10 December.

Other developments with Ripple

The SEC filed a lawsuit against Ripple in December 2020, alleging that the company offered unregistered securities, XRP tokens worth about $1.3 billion to public investors, arguing that the agency should classify and regulate XRP as a security. The lawsuit caused a drastic fall in XRP’s price, falling over 50 percent and losing $16 billion of its market cap.

Read also: XRP claims 3rd largest cryptocurrency spot; eyes new all-time high price.

Read also: Circle and Binance partner to boost global USDC and crypto adoption.

In July 2023, the presiding judge in the lawsuit Analisa Torres ruled that XRP is not a security but a digital currency, distinct from traditional securities subject to the SEC’s regulations. XRP recovered by over 75% within 24 hours following the ruling.

Earlier in December, WisdomTree filed  for a spot XRP exchange-traded fund application to the SEC, which was rejected.

Following a brief sell-off after XRP’s price peaked at $2.91 on 4 December, crypto whale inventors leveraged the subsequent market volatility to accumulate significant amounts of XRP. Between 4 and 11 December, the whale cluster boosted their holdings from 4.58 billion XRP to 4.79 billion XRP, amounting to a 210 million XRP increase ($494.2 million) at current market prices. $RLUSD’s approval on 10 December also influenced this activity.

Read also: Ripple and XRP Explained.

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Jude Ayua is a policy analyst at CAB. A lawyer, Jude is an associate at Infusion Lawyers where he is a member of the Blockchain & Virtual Assets Group. He is also a member of the Policy & Regulations Committee of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN). Jude reports and writes on crypto policy and regulations. jude@infusionlawyers.com