The New York State Department of Financial Services (NYDFS) has officially granted Ripple’s subsidiary, Anchorage Digital NY, LLC, a BitLicense, signifying a significant advancement in Ripple’s position within the regulated digital asset industry.
With this authorization, Anchorage Digital becomes a pioneering institution in the state of New York, capable of providing safe and affordable trading solutions to institutions located there.
Anchorage Digital is scheduled to fully roll out its complete capabilities in early 2025. As one of the few agency trading desks to obtain a BitLicense, it will be able to offer clients deep liquidity and regulated trading options.
“We are excited to announce that the New York State Department of Financial Services (@NYDFS) has approved our subsidiary, Anchorage Digital NY, LLC, for a BitLicense. The addition of BitLicense-regulated trading means Anchorage Digital can offer institutions in New York State…” – Anchorage Digital (@Anchorage) December 16, 2024.
The achievement of Anchorage Digital highlights its commitment to regulatory compliance and innovation within the financial industry. This aligns with Ripple’s broader strategy of integrating digital assets into the traditional financial system.
Anchorage Digital will enable institutions based in New York to access a regulated trading environment, ensuring both efficiency and security through this approval.
This development not only enhances Ripple’s infrastructure but also sets a new standard for other companies navigating New York’s strict regulations. Nathan McCauley, CEO and Co-Founder of Anchorage Digital, stated:
“Receiving a BitLicense is a significant step forward for Anchorage Digital and the digital asset industry as a whole. Bringing regulated and efficient crypto trading to clients based in New York is the latest milestone in our journey to build the best regulatory and technical stack for institutions in crypto.”
Ripple, known as a leading provider of digital asset infrastructure for financial institutions, is expanding its product offerings with the launch of its enterprise-grade stablecoin, Ripple USD (RLUSD). The stablecoin, designed with trust, utility, and compliance in mind, will be available on global markets starting from December 17, 2024.
To ensure reliability, liquidity, and stability, RLUSD will be backed by U.S. government bonds, dollar deposits, and other cash equivalents. Ripple will provide monthly third-party attestations of RLUSD’s reserve assets, conducted by an independent auditing company, to maintain transparency.
RLUSD bridges the scalability of blockchain with real-world financial solutions. It has already gained traction on key platforms such as Uphold, Bitso, MoonPay, Archax, and CoinMENA. In the coming weeks, RLUSD will be available on additional exchanges, including Bullish, Bitstamp, Mercado Bitcoin, Independent Reserve, and Zero Hash.
Ripple CEO Brad Garlinghouse emphasizes the importance of operating within a regulatory environment that meets global standards. Launching RLUSD under NYDFS’s limited-purpose trust business charter is a strategic decision that aims to promote wider acceptance of stablecoins like RLUSD, which are backed by real-world value and supported by Ripple’s years of experience.
RLUSD’s scalability and adaptability, built on the XRP Ledger and Ethereum blockchains, make it suitable for various financial use cases. These include facilitating fast cross-border payments, providing liquidity for treasury and remittance operations, and seamless integration with decentralized finance (DeFi) systems. RLUSD also serves as collateral for trading tokenized real-world assets, such as securities, commodities, and treasuries, creating new opportunities in the evolving digital asset space.
RLUSD will play a central role in Ripple Payments’ global operations as the company continues to expand its ecosystem. With over $70 billion in payments across 90+ markets, Ripple Payments will utilize RLUSD next year to enhance cross-border payment efficiency for businesses.
This development establishes RLUSD as a reliable and compliant asset that addresses financial needs across the Americas, Asia-Pacific, the UK, and the Middle East.
In addition, Ripple has enlisted prominent business leaders to advise on the expansion of RLUSD and ensure its long-term stability. The advisory board for RLUSD includes renowned individuals such as former Federal Reserve Bank of Boston official Kenneth Montgomery and former Reserve Bank of India Governor Raghuram Rajan.
Together with other key advisors, including Chris Larsen, co-founder of Ripple, they will provide strategic direction on the operational, financial, and regulatory aspects of RLUSD’s development.
Rajan highlights how stablecoins can offer secure and scalable alternatives to traditional systems, potentially revolutionizing global payments. With a focus on compliance and reliability, RLUSD aims to establish new benchmarks for confidence in the stablecoin market.
