YEREVAN (CoinChapter.com) — Ripple aims to expand the reach of its stablecoin RLUSD by targeting major exchanges, including Coinbase and Binance. The company is navigating regulatory frameworks and addressing technical challenges to achieve its goals.
RLUSD Gains NYDFS Approval and Expands Listings
Ripple’s RLUSD, a U.S. dollar-pegged stablecoin, was launched in December on Ethereum and the XRP Ledger. The stablecoin received approval from the New York State Department of Financial Services (NYDFS), making it the first XRP Ledger-based asset to gain such recognition. Jack McDonald, Ripple’s senior vice president of stablecoins, emphasized its significance:
“That paves the way for other, particularly NYDFS-regulated entities, to support it.”
Following this approval, RLUSD secured listings on Bitstamp, Uphold, Independent Reserve, and several other exchanges. Ripple is leveraging this regulatory milestone to approach more platforms.
Exclusivity Agreements Pose Barriers to Growth
Ripple faces challenges in expanding RLUSD to larger platforms like Coinbase and Binance due to exclusivity agreements between exchanges and existing stablecoin issuers. For instance, Coinbase has a partnership with Circle’s USDC, and Binance has a similar arrangement with FDUSD. McDonald explained:
“Certain exchanges have very strategic relationships with one stablecoin where they want a partner and they’ve got an economic relationship.”
These agreements create limitations for RLUSD’s adoption across certain markets. Ripple is addressing these barriers while continuing discussions with multiple exchanges.
Technical Integration Remains a Key Challenge
Technical differences between blockchain platforms also complicate RLUSD’s adoption. McDonald noted that cryptocurrency exchanges must build specific infrastructure to support new tokens. He stated:
“It’s different than the New York Stock Exchange where basically the plumbing is all the same.”
Exchanges require both initial integration and ongoing support for blockchain-based assets. Ripple continues to work on resolving these issues to enable wider access to RLUSD.
RLUSD Listings Focus on Market Demand and Stability
RLUSD has already been listed on exchanges such as Bullish, Moonpay, Bitso, and Coinmena. Ripple is targeting additional listings while focusing on institutional demand and trading volumes. McDonald noted that exchanges evaluate trading activity before listing new assets, adding:
“They want to make sure that the volume is worth their while because there is a tech lift and ongoing support.”
Ripple is also exploring opportunities to expand RLUSD to additional networks, aiming to increase its presence in the stablecoin market.
