Ripple’s XRP token has surged by 15% over the past 24 hours, climbing from $2.08 to $2.39, following the company’s final approval from the New York State Department of Financial Services (NYDFS) to launch its U.S. dollar-pegged stablecoin, Ripple USD (RLUSD). This regulatory milestone marks a pivotal moment in Ripple’s evolution, reinforcing its growing legitimacy in the digital asset ecosystem and fueling renewed investor confidence.
Year-to-date, XRP has appreciated by approximately 276%, positioning it among the top-performing cryptocurrencies of 2025. The rally reflects broader market optimism and Ripple’s expanding role in bridging traditional finance with blockchain innovation.
A Major Regulatory Breakthrough for Ripple
The NYDFS approval, confirmed by Ripple CEO Brad Garlinghouse, clears the path for RLUSD to be listed on major cryptocurrency exchanges and integrated across partner platforms. Garlinghouse emphasized that the official launch date for RLUSD will be announced shortly, signaling that Ripple is now operationally ready to enter the competitive stablecoin landscape.
This green light comes after a series of delays caused by regulatory scrutiny. Originally slated for a December 4 launch, the rollout was postponed as Ripple worked closely with NYDFS to satisfy compliance requirements. The agency mandates that any firm issuing or managing digital assets in New York must hold either a BitLicense or a limited-purpose trust charter—both of which Ripple has now secured.
Despite earlier setbacks, Ripple CTO David Schwartz remained confident about meeting year-end deployment goals. The company stressed its ongoing collaboration with regulators, underscoring its commitment to transparency and regulatory alignment—a stark contrast to the adversarial stance seen in other crypto-sector disputes.
RLUSD: Design, Backing, and Use Cases
Ripple USD (RLUSD) is a 1:1 U.S. dollar-backed stablecoin, fully collateralized by highly liquid reserves including cash deposits and short-term U.S. Treasury securities. This robust asset backing model ensures price stability and reliable peg maintenance, aligning RLUSD with industry standards set by leading stablecoins like Tether (USDT) and USD Coin (USDC).
Ripple envisions RLUSD playing a transformative role in cross-border payments, where speed, low cost, and reliability are critical. By serving as a digital bridge between fiat and crypto, RLUSD aims to simplify value transfer for individuals and enterprises alike. Key applications include:
- Global remittances: Faster settlement times compared to traditional banking rails.
- Trading liquidity: Enhanced market depth on exchanges using RLUSD pairs.
- Collateralization: Use in decentralized finance (DeFi) protocols and real-world asset tokenization.
- Merchant payments: Streamlined invoicing and settlement for international commerce.
Beta testing for RLUSD began in August across two major blockchains: the XRP Ledger and Ethereum. This dual-chain approach allows Ripple to maximize reach while leveraging the unique advantages of each network—speed and low fees on XRPL, and broad DeFi integration via Ethereum.
Entering a Crowded but Growing Market
RLUSD enters a stablecoin market long dominated by USDT and USDC. As of early December 2025, Tether commands a market capitalization of approximately $138 billion, while Circle’s USDC holds around $40.8 billion, according to CoinGecko data. These figures highlight the dominance of established players—but also reveal significant room for innovation and expansion.
While PayPal and other financial giants have launched their own stablecoins in recent years, none have managed to significantly erode the duopoly. However, Ripple believes RLUSD can carve out substantial market share by leveraging its existing partnerships in banking, remittance corridors, and central bank digital currency (CBDC) projects.
The company projects RLUSD could reach a $2 trillion market valuation by 2028—a bold forecast supported by independent analysis. Bernstein Research estimates the global stablecoin market could hit $2.8 trillion by that same year, driven by increasing institutional adoption, regulatory clarity, and integration into mainstream financial infrastructure.
Bernstein also notes that co-branded stablecoins—issued through collaborations between tech platforms, banks, and payment providers—are likely to gain traction due to their ability to enhance user engagement and streamline transactions across ecosystems.
XRP Overtakes Solana, Challenges Top Three
In tandem with the RLUSD news, XRP has reasserted its market strength by overtaking Solana (SOL) in total market capitalization, now ranking as the fourth-largest cryptocurrency. For a brief period last week, XRP even edged past Tether (USDT) to claim third place—though USDT has since reclaimed its position due to higher circulating supply and trading volume.
Several macro factors contributed to this surge:
- Improved regulatory outlook: The resignation of SEC Chair Gary Gensler was interpreted as a positive shift in U.S. crypto policy.
- Political tailwinds: Following Donald Trump’s 2024 presidential victory, pro-crypto sentiment surged across markets.
- Legal progress: Ripple continues to make headway in its long-running legal battle with the SEC, with recent rulings favoring the classification of XRP as a currency rather than a security in certain contexts.
With XRP trading at $2.39, it remains about 32% below its all-time high of $3.40 reached during the 2018 bull run. Yet current momentum suggests strong potential for further appreciation if adoption accelerates and regulatory clarity expands.
Core Keywords Integration
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- XRP price
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- stablecoin market
- cross-border payments
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These keywords reflect high-intent search queries from users seeking timely updates on Ripple’s progress, stablecoin launches, and regulatory milestones.
Frequently Asked Questions (FAQ)
Q: What is RLUSD?
A: RLUSD is Ripple’s U.S. dollar-pegged stablecoin, backed 1:1 by cash and short-term U.S. Treasuries. It’s designed to facilitate fast, low-cost cross-border transactions and integrate with both traditional finance and blockchain applications.
Q: Why did RLUSD’s launch get delayed?
A: The delay was due to additional regulatory review by the NYDFS. Ripple needed final authorization under New York’s strict financial licensing framework before proceeding with public issuance.
Q: How does RLUSD compare to USDT and USDC?
A: Like USDT and USDC, RLUSD is pegged to the U.S. dollar and backed by liquid reserves. However, RLUSD benefits from Ripple’s extensive network in global payments and its focus on institutional-grade compliance.
Q: Can I buy RLUSD now?
A: Not yet. Ripple has not announced the official release date or initial exchange listings. Once launched, it will be available on major crypto platforms.
Q: Will RLUSD be issued on multiple blockchains?
A: Yes. RLUSD underwent beta testing on both the XRP Ledger and Ethereum, indicating a multi-chain deployment strategy at launch.
Q: Is XRP considered a security?
A: The legal status is still evolving. Recent court rulings have suggested that XRP may not be a security when sold to retail investors on exchanges, though the broader case with the SEC continues.
The Road Ahead for Ripple and XRP
With NYDFS approval secured and RLUSD poised for launch, Ripple stands at the forefront of regulated blockchain innovation. Its dual focus on compliance and real-world utility positions it uniquely within the crypto space—not just as a speculative asset, but as an infrastructure provider for next-generation financial systems.
As stablecoins become increasingly embedded in global commerce and central bank initiatives, Ripple’s strategic positioning could drive sustained demand for both RLUSD and XRP.