Yesterday Ripple announced its preparation for the launch of its RLUSD stablecoin. It announced an array of cryptocurrency exchanges that are prepared to list it, and revealed that it will be issued under a New York Trust Company Charter.
Oddly, the announcement did not say ‘subject to regulatory approval’ unlike the Ripple website. Perhaps it already has the all clear. Notably, the leader of the regulator (NYDFS) appeared at Ripple’s Swell conference this week.
Ripple has had a New York virtual currency license for eight years. In February it acquired Standard Custody, which holds a New York Trust charter. Using a trust rather than a more permissive license provides greater protection for client funds. However, a virtual currency and money transmitter license is more flexible for the issuer.
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