Ripple Labs has officially confirmed the submission of a trust charter application in New York, which could reshape its strategy in the stablecoin market.
License Request and Its Significance
Ripple has applied for a trust license from the New York Department of Financial Services (NYDFS). This move will allow the company to offer custody and issuance services for stablecoins while adhering to regulatory norms. The license aims to strengthen Ripple's credibility among institutional clients and regulators, as noted by legal head Stuart Alderoty.
Context of Ripple's Legal Battle
Ripple is winding down its lengthy legal battle with the U.S. Securities and Exchange Commission (SEC). CEO Brad Garlinghouse confirmed that Ripple dropped its cross-appeal in the ongoing case. A resolution is anticipated, with expectations that the SEC will also drop its appeal, providing legal clarity essential for Ripple's expansion into new financial services.
Current Situation in the Stablecoin Market
The stablecoin market continues to grow, reaching a total supply of $175 billion by June 2025. Circle's USDC and Tether's USDT currently dominate with a combined market share of over 85%. In this context, Ripple plans to launch its stablecoin, emphasizing its commitment to regulatory compliance, which may distinguish it from other market players.
Ripple's approach to regulatory compliance, along with its technical readiness for stablecoin issuance, could provide the company with strong positioning in the growing market. The anticipated approval of the NYDFS license will be critical for the company's further development.
