Ripple addresses RLUSD New York delay, as XRP’s growth fuels ecosystem hype

Ripple has announced a delay in the launch of its RLUSD stablecoin due to regulatory issues with the New York State Department of Financial Services (NYDFS).

In a Dec. 4 statement on X (formerly Twitter), the platform stated:

“Despite some speculation, $RLUSD isn’t launching today. We’re in lockstep with the NYDFS on final approval and will share updates as soon as possible.”

Further, Ripple emphasized its commitment to regulatory compliance, reassuring RLUSD would only be launched after securing the necessary approvals from NYDFS.

Fox Business journalist Eleanor Terret noted that her earlier report about the NYDFS’s nearing approval for RLUSD was confirmed by Ripple’s post. She added that while two sources had pointed to Dec. 4 as the potential launch date, unexpected developments have led to the current delay.

New York’s stringent crypto regulations require companies serving state residents to obtain a BitLicense or a limited-purpose trust company charter from the NYDFS. According to the regulator’s website, only 33 firms have secured these licenses, including Ripple and its subsidiary Standard Custody.

Interest in XRP’s ecosystem soars

Ripple’s delay of RLUSD comes at a period of heightened interest in XRP’s ecosystem.

Over the past month, the digital asset recorded a 400% price growth, pushing its value into the top three cryptocurrencies by market cap.

However, XRP dropped by around 10% in the last 24 hours, falling to $2.2 before recovering to $2.4 as of press time. This price performance wiped out over $55 million from crypto speculators, according to Coinglass data.

Nevertheless, interest in the token and other projects within its ecosystem is at a record level. For context, data from XRPScan shows that the number of active accounts on the XRP Ledger (XRPL) has crossed 100,000 for the first time.

Additionally, Dexscreener data shows that there has been a steady increase in decentralized exchange trading activity during the past month, thanks to the proliferation of memecoins on the blockchain network.