Ripple Labs is on the brink of securing approval from the New York Department of Financial Services (NYDFS) for its RLUSD stablecoin, according to a Fox Business report. The dollar-pegged, overcollateralized stablecoin could launch as early as Dec. 4, marking a significant milestone for Ripple’s growing ecosystem.

In a statement from August, Ripple emphasized the demand for reliable stablecoins to enhance trust and utility in the market. Once launched, RLUSD will integrate with Ripple’s cross-border payments system alongside XRP, aiming to offer global customers improved liquidity and faster transactions.

Ripple first revealed its plans for RLUSD in April 2024, positioning the stablecoin as a competitor to industry giants like USD Coin and Tether. While some XRP holders initially feared a shift in focus from XRP to RLUSD, Ripple has reassured users of its commitment to its flagship token.

The company projects a stablecoin market cap of $2 trillion by 2028, highlighting significant opportunities for multiple players in the space. Testing of RLUSD began on the XRP Ledger and Ethereum mainnet in August, with Ripple announcing intentions to expand to other blockchains in the future.

To bolster confidence, Ripple has promised regular third-party audits and monthly collateral reserve reports for RLUSD. Partnerships with exchanges such as Uphold, Bitstamp, and MoonPay were confirmed in October, further solidifying RLUSD’s market entry.

CEO Brad Garlinghouse reiterated Ripple’s dual focus on leveraging XRP and adhering to stringent regulatory compliance under its New York Trust Company Charter. With NYDFS approval imminent, RLUSD could reshape the stablecoin landscape while reinforcing Ripple’s dominance in the crypto payments sector.