Ripple has received final approval for its stablecoin, RLUSD, from the New York Department of Financial Services, as confirmed by Ripple CEO Brad Garlinghouse.

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.

— Brad Garlinghouse (@bgarlinghouse) December 10, 2024

In a post on X, Garlinghouse announced,

“This just in… we have final approval from NYDFS for $RLUSD!”

RLUSD, designed as a 1:1 US dollar-backed stablecoin, will be backed by US dollar deposits, short-term US government treasuries, and other cash equivalents, similar to Tether’s backing structure.

RLUSD aims to penetrate the US market and directly challenge the dominance of Circle’s USDC.

At press time, USDC stands as the second-largest stablecoin behind Tether, with a market cap of $40 billion.

According to Ripple CEO Brad Garlinghouse, the stablecoin will primarily target large institutional players and is ready to be listed on major crypto exchanges soon.

Earlier this year, the coin underwent testing on the XRP Ledger and Ethereum networks and is now preparing for its launch on Ripple’s partner platforms.

The news of RLUSD’s approval drove Ripple’s native token, XRP, to jump 10%, continuing its recent momentum. Since the US elections, XRP has surged 400%, surpassing Solana to become the fourth most valuable crypto asset.

With the introduction of RLUSD, Ripple aims to enhance its cross-border payment solutions, leveraging both RLUSD and XRP.