Ripple Secures Stablecoin Approval: What is Next for XRP Price?

- Ripple Gains NYDFS Approval for Stablecoin, Market Competitiveness is Key - RLUSD Launch Nears, Ripple Ventures into the Stablecoin Market [Unblock Media] Ripple has received approval from the New York State Department of Financial Services (NYDFS) to launch its RLUSD stablecoin. Ripple CEO Brad Garlinghouse announced this via social media on December 11, explaining that the delay was due to unforeseen developments. In New York State, cryptocurrency service providers must comply with strict regulations by obtaining either a BitLicense or a limited-purpose trust company charter. Receiving this approval under such conditions is significant for Ripple in terms of regulatory compliance and reliability. As of December 8, the total supply of stablecoins reached an all-time high of $193.6 billion but has since decreased slightly to around $192.8 billion. Tether USD (USDT) holds the largest share in the stablecoin market, with a valuation of $141 billion. Competition with a market leader like USDT is expected to be fierce. Recently, PayPal's PYUSD stablecoin saw its market capitalization drop by about 50% after launch, attributed to the end of an incentive program which led to rapid withdrawal of consumer interest and capital. In contrast, the USDe stablecoin, thanks to its incentive program, has grown its market size to over $5.6 billion, surpassing Sky's (formerly MakerDAO) stablecoin market size. This growth is mainly due to USDe offering an annual yield of 27%. Ripple's regulatory approval marks an important milestone for the company. The way they enter the market and the response to their incentives will be critical. In a highly competitive environment, providing attractive returns will be key to RLUSD's success. Investors also evaluate factors such as reliability, liquidity, exchange support, and regulatory transparency beyond incentives. Ripple's NYDFS approval already gives them a significant advantage in regulatory transparency. Future strategies should consider expanding partnerships with various exchanges to increase liquidity, and implementing specific marketing plans, such as reducing transaction fees to strengthen the user base. Observing how RLUSD will position itself in the stablecoin market will be crucial going forward.