Ripple Gets Financial License in the US, What Will the Impact be on XRP and RLUSD?

Bittime - Ripple succeeded in obtaining a financial license or Money Transmitter Licenses (MTLs) in two important states in the United States, New York and Texas. Read more in this article.

This step is a strategic milestone that strengthens Ripple's position in the United States domestic market. With this license, Ripple is able to offer a cross-border payment solution that is fully managed by the company, from sending to receiving funds.

US Finance License and Ripple's Commitment

This move confirms Ripple's commitment to providing faster, more efficient and affordable financial services. 

In addition, this license strengthens Ripple's position amidst the pro-crypto government policies led by Donald Trump, which are considered friendlier towards digital assets.

However, the biggest impact of obtaining this license is the increase in market confidence in Ripple products, especially XRP and the RLUSD stablecoin. What are the specific implications? Following is the discussion.

Read also: New Chapter XRP Vs BTC: Ripple Lobbies US Strategic Bitcoin Reserve for What?

Ripple's Expanding Role in the US Thanks to Pro-Crypto Policies

The new administration under Donald Trump brought major changes to the digital asset regulatory landscape in the United States. 

Policies that are more supportive of the blockchain industry, including the repeal of strict regulations such as SAB 121 by the US Securities and Exchange Commission (SEC), are opening the door for traditional financial institutions to adopt blockchain technology.

According to Joanie Xie, Ripple's Managing Director for North America, there is a surge in demand from financial institutions and crypto businesses who need global payment solutions that are faster, more efficient and available 24/7. 

Ripple, with its long track record in the blockchain space, is ideally positioned to meet this need.

In addition to the new licenses in New York and Texas, Ripple also has more than 55 global licenses, including a BitLicense from New York, permission from the Monetary Authority of Singapore, as well as certification from the Dubai Financial Services Authority. 

This is clear evidence that Ripple continues to strive to expand its global reach while complying with regulations in various countries.

Read also: Why Do Banks Need XRP? This is what members think

License Impact for XRP and RLUSD

XRP

As Ripple's primary asset, XRP directly benefits from this new legitimacy. Financial licensing in the US opens up huge opportunities for XRP adoption by banks and traditional financial institutions. 

In recent years, XRP recorded transaction volume worth $70 billion (around IDR 1,134 trillion) in more than 90 global markets.

With the recognition of regulators in the US, XRP's position as a cross-border payment tool has become even stronger. This could speed up its integration into the broader global payments system.

RLUSD

RLUSD, the stablecoin that Ripple launched last December, is also projected to make big profits. Initially available on XRP Ledger and Ethereum, RLUSD will soon be integrated into Ripple's payment service. 

This regulatory support makes RLUSD more attractive to companies looking for a stablecoin alternative for cross-border transactions.

Read also: Can XRP Make You Rich? Listen to this explanation!

Ripple's Challenges and Future Prospects

Although this achievement brings a breath of fresh air, Ripple still faces challenges, especially regarding legal cases with the SEC.

However, with the support of friendlier policies under the Trump administration, there are high hopes that Ripple can resolve this dispute more quickly.

Additionally, with strengthening regulations supporting blockchain innovation, Ripple is expected to continue expanding its role, not only in the US but also globally.

FAQ

What are Money Transmitter Licenses (MTLs)?

MTLs are licenses that allow companies to legally offer money transfer services in certain states in the US.

What is RLUSD?

RLUSD is a stablecoin released by Ripple for cross-border transactions with value stability.

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Reference 

Cryptoslate, Ripple expands US operations with new money transfer licenses and hiring push, accessed January 28, 2025.

The Block, Ripple secures Money Transmitter Licenses in New York and Texas amid growing US footprint, accessed January 28, 2025.

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