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New York's main cryptocurrency regulator is close to giving the green light to a new stablecoin issued by cross-border payments firm Ripple, with an announcement expected in the coming days, FOX Business has learned. Got it.
Approval by the New York Department of Financial Services means Ripple can legally offer its stablecoin RLUSD through a so-called limited purpose trust charter, and Ripple is recognized as a major player in New York's regulated digital financial market and the broader market. Establish a position. Stablecoin ecosystem.
Spokespersons for Ripple and NYDFS had no comment.
Ripple's business model leverages blockchain technology through its global payment network RippleNet to provide banks and businesses with faster, cheaper, and more efficient cross-border payment solutions as an alternative to the global banking payment system SWIFT. We are focused on providing. Its native token, XRP, acts as a bridge currency to settle these transactions, but this token is currently unregulated in the United States and is subject to volatile price fluctuations.
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In 2020, when the Securities and Exchange Commission sued Ripple for violating securities laws by selling XRP without registering it, the price of XRP fell more than 50% and its market capitalization decreased by $16 billion. . For the nearly four years that Ripple has been embroiled in a legal battle with the SEC, its price has remained mostly below $1. However, XRP has fallen significantly in the coming weeks on expectations that crypto-friendly President-elect Donald Trump will win and make good on his promise to ease crypto regulations and make the United States the “crypto capital of the planet.” showed an increase.
President-elect Donald Trump has said he wants to make the United States the “crypto capital of the planet.” (Reuters/Kevin Wurm/File Photo/Reuters Photo)
Currently, XRP trades at $1.70, making it the fifth largest cryptocurrency in the world by market capitalization.
By issuing a regulated stablecoin, Ripple can provide a stable alternative to XRP for those who want to use digital currencies without being exposed to volatility or regulatory uncertainty. It will look like this. This move puts Ripple in direct competition with other established US stablecoin issuers such as Circle, Paxos, and Gemini.
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A stablecoin, a digital currency pegged to an asset with a stable valuation, such as the US dollar, is primarily used as a store of value and medium of exchange, and facilitates cross-border payments using the underlying blockchain technology. Facilitate faster and cheaper transactions in transfers and remittances. The current value of the stablecoin market is approximately $190 billion, and that amount is expected to increase further under the incoming crypto-pro-Trump administration, which is expected to be able to pass stablecoin regulations at the federal level.
The Seal of the Securities and Exchange Commission on the wall of SEC headquarters in Washington, DC (Reuters/Jonathan Ernst/File Photo/Reuters Photo)
For now, regulation at the state level remains the primary solution for companies wishing to offer stablecoins. NYDFS is known for its rigorous approach to cryptocurrency regulation, ensuring that companies wishing to offer digital assets meet high regulatory standards, including compliance with anti-money laundering and consumer protection regulations. Obtaining a limited purpose trust charter, as Ripple does, is one way for companies to offer specific services related to digital assets without being subject to all the regulations of traditional banks. Stablecoin issuers Paxos and Gemini are also registered with NYDFS and can provide New York residents and businesses access to PAX and GUSD stablecoins through a trust charter.
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Ripple plans to work with other payment providers such as MoonPay for the expected stablecoin rollout in the coming days.
“The entry of another well-capitalized and highly regulated player into the global stablecoin market is a win-win, especially with the MiCA regulation about to be introduced in Europe, and MoonPay is a partner of ours. “We're proud to offer our customers access to RLUSD on day one of Ripple's launch,” said Keith Grossman, President of MoonPay's Enterprise Division.
