XRP Price Rallies 5% After RLUSD Secures NYDFS Approval

XRP price has increased by 5% after the final approval of the RLUSD stablecoin is legal from NYDFS. However, Ripple CEO Brad Garlinghouse shared the news on X, stating that the approval would be for Ripple’s cross-border payment operations.

XRP Price Action and Market Impact

The current price of XRP is $2.32, having risen by 5% within the course of the day, with the high at $2.42 and the low at $1.90.

The surge follows Ripple’s announcement of NYDFS approval for RLUSD, a stablecoin pegged to the US dollar. The stablecoin is designed to be backed by US dollar deposits, short-term US Treasury bonds, and other cash equivalents.

This rally is part of XRP price’s broader bullish trend, which has seen the cryptocurrency since Ripple’s favorable developments earlier this year.

There is also an identified resistance at $2.50 and the analysts suggest that additional gains may be expected if the price can continue pushing past this level. On the flip side, the levels of $2.20 and $1.45 act as support for potential downward reversals.

Ripple’s RLUSD Stablecoin and Market Strategy

Given the approval of RLUSD, Ripple aims to become an addition to the list of leading stablecoins such as USDT from Tether and USDC from Circle. Furthermore, Ripple has challenged these giants by directly comparing RLUSD compliance with its legal system and strong support of USD assets.

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In a statement on X, Garlinghouse highlighted RLUSD’s potential to revolutionize cross-border payments by targeting large institutional clients. Ripple has already announced partnerships with major exchanges, including Bitstamp, Bitso, and Uphold, to facilitate RLUSD’s adoption.

At the moment, the stablecoin market capitalization stands at nearly $200 billion, and Ripple has plans to dominate this segment by linking RLUSD to the payment system together with XRP.

Ripple executives have optimistic expectations for RLUSD as they believe that it could become a $2 trillion asset by 2028. Earlier this year, it tested stablecoin on both the XRP Ledger and Ethereum and showcased the compatibility and possibility of handling large volumes.

Regulatory Milestones and Broader Implications

The approval from NYDFS is a new progress in the regulation for Ripple, which shows more recognition of the corporate management and operational risk control system.

This approval makes RLUSD one of the highly regulated stablecoins, which may augur well for institutions that wish to avoid jurisdictions that come with certain regulatory risks.

At the same time, Ripple is stepping up its expansion in the stablecoin market as it seeks to regain its foothold in the market after its court case where the SEC had accused Ripple of selling unregistered security. As of now, the case remains unsolved, yet it shows that the financial sector continues to accept Ripple as a legitimate player as evidenced by the RLUSD approval.

The introduction of RLUSD is consistent with Ripple’s overall mission to revolutionize global payments using distributed ledger technology. Thus, using the reliability of RLUSD and the speed and scalability of XRP, Ripple sets the goal to solve the problems of global payments for financial institutions.

Future Prospects for Ripple and XRP Price

RLUSD stablecoin is also expected to be launched on several exchanges in the coming weeks and become even more integrated into the Ripple payment protocol.

XRP price movements suggests that the market has responded positively to Ripple’s latest developments. Analysts believe that breaking the $2.50 resistance could trigger a new wave of buying interest, potentially pushing XRP price higher in the short term.

As Ripple continues to add more payment partners, the utilization of RLUSD and XRP makes Ripple a dominant force in blockchain payments.