Ripple CEO Brad Garlinghouse has announced that the firm has received approval from the New York State Department of Financial Services (NYDFS) to launch its Ripple USD (RLUSD) stablecoin. This news was shared by Garlinghouse on social media on December 11, with the token expected to go live in the near future.
Initially, the NYDFS was scheduled to approve the stablecoin on December 4, but unforeseen developments caused a delay in the launch. Despite this setback, Ripple remains committed to launching the stablecoin under the supervision of the regulator. It is important to note that New York requires crypto firms offering services to state residents to obtain a BitLicense or a limited-purpose trust company charter from the NYDFS.
The stablecoin market has seen significant growth, reaching an all-time high of $193.6 billion on December 8 and currently standing at $192.8 billion. Tether USD (USDT) dominates the market with a size of nearly $141 billion, making it challenging for new entrants to compete. For example, PayPal’s stablecoin PYUSD saw a 50% decrease in market cap between late August and the present.
On the other hand, Ethena’s stablecoin USDe has experienced growth in recent weeks, boasting a market size of over $5.6 billion due to incentive programs. Notably, this surpasses the market cap of Sky’s stablecoins combined. PYUSD reached over $1 billion in market cap during its incentive program on the Solana decentralized ecosystem, which decreased after the program ended. In contrast, USDe currently offers an annual percentage yield of 27%.
As the stablecoin market becomes more competitive and investors seek greater value incentives, RLUSD’s success may hinge on offering attractive returns to its users. With the market heating up, it will be interesting to see how Ripple’s stablecoin fares against established competitors.
Disclaimer: The opinions expressed in this article are those of the writers and do not necessarily reflect the views of CryptoSlate. This article is not investment advice, and CryptoSlate does not endorse any projects mentioned. Trading cryptocurrencies involves risks, so it is advisable to conduct thorough research before making any investment decisions. CryptoSlate is not liable for any financial losses incurred from trading cryptocurrencies.