The world of cryptocurrencies and blockchain technology is awaiting a possible significant development: the launch of Ripple's stablecoin RLUSD.
Despite regulatory challenges that have put the launch of this stablecoin in jeopardy, David Schwartz, Ripple's CTO, has expressed optimism about the possibility of RLUSD seeing the light of day before the end of the year.
Speaking at The Block’s Emergence conference, Schwartz stated that the company continues to work closely with regulatory authorities, particularly the New York Department of Financial Services (NYDFS), to obtain the necessary approval for its early launch.
The US dollar-backed stablecoin RLUSD has been designed to offer an efficient, secure, and regulated payment solution, leveraging Ripple’s blockchain technology. The NYDFS, known for its rigorous approval process, has been the main hurdle in RLUSD’s way. According to sources close to the company, the department was expected to issue its decision in early December, but to date, no official response has been given.
Despite this delay, Schwartz has assured that Ripple remains committed to the launch of RLUSD and that the company is working to meet all necessary regulatory requirements.
Federal agency holiday closures: Does RLUSD launch threaten?
Despite David Schwartz's optimistic stance, the reality is that RLUSD faces several significant hurdles that could delay its launch. One of the main challenges, he discussed during his participation in the conference, is the holiday schedule. As the end of the year approaches, many federal agencies, including the NYDFS, scale back their activity and enter a holiday closure period.
Schwartz said the shutdown could significantly slow down the approval and review processes, potentially pushing a decision on RLUSD to early 2025.
Although Ripple has been working tirelessly to comply with all requirements, the closure of federal agencies could be an unexpected setback.
“The annoying part for us is that we are getting close to the holidays… I am very hopeful that it will happen this year, but unfortunately, once you start getting into Christmas and New Year’s, people leave.”, Schwartz said.
Furthermore, the overall regulatory environment remains uncertain. The cryptocurrency industry has faced increasing scrutiny in the United States in recent years, leading to a more cautious regulatory climate, where approvals for new stablecoins may take longer than expected. Despite the electoral victory of Trump, who has become an advocate for cryptocurrency innovation, the United States has yet to establish a clear legal framework for crypto assets.
Charles Hoskinson advocates for RLUSD integration into Cardano
As Ripple continues to work through regulatory challenges, the crypto community has shown great enthusiasm for the launch of RLUSD. One of the most notable endorsements has come from Charles Hoskinson, the founder of Cardano, who has expressed his interest in integrating RLUSD into the Cardano network.
In a recent interview, Hoskinson stated that the listing of RLUSD on Cardano could open up new opportunities to explore innovative use cases and improve interoperability between different blockchains.
Hoskinson revealed that he had met with Schwartz and that they had discussed integrating RLUSD, which will be deployed on XRP Ledger and Ethereum, into Cardano.
“Part of the discussion was to see if we can bring RLUSD to Cardano”, Hoskinson commented, while stressing that RLUSD represents a big win for XRP.
The integration of RLUSD into Cardano would not only benefit Ripple, but could also boost the Cardano ecosystem, offering its users a US dollar-backed stablecoin that meets high security and regulatory standards. Moreover, this potential integration could just be the beginning, as other projects and platforms could also be interested in adopting RLUSD.
In conclusion, although the launch of RLUSD faces significant challenges, the enthusiasm and support of the crypto community, along with Ripple’s determination, suggest that the stablecoin could have a notable impact on the blockchain ecosystem. While the company continues to work to overcome regulatory hurdles, the crypto community is keeping an eye on any developments that could lead to the long-awaited arrival of RLUSD.
