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Ripple’s RLUSD stablecoin is gaining momentum, with speculation surrounding a potential collaboration with Hedera for the coin’s expansion. Shawn, a World Economic Forum member, sparked discussions on X.
Ripple to Partner Hedera?
In a post on X, Shawn wrote, “Increasing rumours about XRP #RLUSD stablecoin being expanded to HBAR amid reports of Ripple and Hedera working on a global settlement standard.”
However, nothing has been confirmed officially by either of these firms. Nonetheless, the rumors continue to circulate with some netizens even speculating around Goldman Sachs’ involvement in the Ripple-Hedera partnership.
🚨BREAKING: Increasing rumours about $XRP #RLUSD stablecoin being expanded to $HBAR amid reports of Ripple and Hedera working on a global settlement standard pic.twitter.com/K6yZpmGH6n
— Shawn (@oroogle) November 29, 2024
Additionally, sources familiar with the developments suggest that Ripple is nearing regulatory approval for RLUSD from New York’s Department of Financial Services (NYDFS). According to these insiders, the NYDFS has indicated its intention to approve the stablecoin, paving the way for Ripple to roll out RLUSD on December 4.
The speculation surrounding Ripple’s potential collaboration with Hedera adds another layer of interest. If realized, such a partnership could signify a step toward establishing a global standard for digital settlements.
Regulatory Approval for RLUSD Stablecoin
In case the approval materializes, RLUSD will position Ripple among the few entities authorized to offer stablecoins within New York’s regulated digital finance landscape. NYDFS’s robust regulatory framework mandates strict compliance with consumer protection, security, and transparency requirements.
Companies typically obtain authorization either through a limited-purpose trust charter or a BitLicense, depending on the nature of their services. Keith Grossman, president of Enterprise at MoonPay, shared his thoughts on the development. According to a FOX Business report, he stated:
“For another well-capitalized, highly regulated player to enter into the global stablecoin marketplace – especially as MiCA regulation in Europe is about to be implemented – is a win-win. MoonPay is proud to provide access to RLUSD for our partners and customers on day one of Ripple’s launch.”
MoonPay, alongside other platforms like Bitstamp and Uphold, is expected to support RLUSD’s launch. For further context, the RLUSD stablecoin, pegged to the U.S. dollar, is designed for cross-border payments and remittances, aiming to facilitate efficient and cost-effective transactions via blockchain technology.
The broader stablecoin market currently holds a valuation near $190 billion and may experience further growth if federal regulation advances under the anticipated Trump administration. Ripple’s move mirrors the strategies of other prominent stablecoin providers.
For instance, Paxos and Gemini operate under trust charters issued by the NYDFS, enabling access to PAX and GUSD stablecoins. Similarly, Circle offers its USDC stablecoin through a BitLicense.
However, Ripple has yet to comment publicly on these developments, and the NYDFS also remains silent. However, the regulatory approval process highlights the significance of state-level oversight for stablecoin projects as federal guidelines remain in flux.