Ripple, XRP, has received final approval from the New York Department of Financial Services for its stablecoin

Ripple, $XRP, has received final approval from the New York Department of Financial Services for its stablecoin.

Ripple Labs CEO Brad Garlinghouse announced that the New York Department of Financial Services (NYDFS) has approved Ripple’s RLUSD stablecoin, enabling its upcoming listings on exchanges and partnerships with financial institutions.

Garlinghouse highlighted Ripple’s ambitions for RLUSD to challenge established stablecoins like Tether’s USDT and Circle’s USDC. The stablecoin was initially tested on the XRP Ledger and Ethereum networks in August and secured collaborations with platforms such as Uphold, Bitstamp, and Bitso by October.

RLUSD will maintain a 1:1 peg to the US dollar, backed by USD deposits, short-term Treasury bonds, and cash equivalents. Ripple aims to attract institutional investors and projects a potential $2 trillion market cap for RLUSD by 2028.

Monica Long, Ripple’s president, stated earlier that RLUSD is designed to complement XRP, which remains central to Ripple’s legal battle with the U.S. Securities and Exchange Commission.

Ripple has named exchanges like Bitstamp, Bitso, Bullish, CoinMENA, Independent Reserve, MoonPay, and Uphold as distribution partners for RLUSD. Market makers Keyrock and B2C2 will facilitate liquidity, while former FDIC Chair Sheila Bair and ex-Centre CEO David Puth have joined Ripple’s advisory board to support RLUSD’s growth.

Stablecoins serve as a critical link between fiat currencies and digital assets in the crypto ecosystem, increasingly favored for cross-border payments, especially in emerging markets. Ripple seeks to leverage its payment infrastructure and support the tokenization of real-world assets such as securities, real estate, and bonds with RLUSD. Long emphasized the need for a “trusted and reliable” stablecoin to act as an on-and-off ramp for tokenized assets.

To ensure transparency, Ripple will offer monthly reserve attestations conducted by San Francisco-based accounting firm BPM. The company assured that RLUSD will be overcollateralized, backed 1:1 by USD reserves or cash equivalents. Additionally, Ripple pledged to provide third-party audits and monthly reserve reports.

Garlinghouse also reaffirmed Ripple’s dedication to both XRP and RLUSD, dismissing speculation that the company might deprioritize XRP in favor of its stablecoin initiatives.