New York’s top crypto regulator is close to greenlighting a new stablecoin issued by cross-border payments company Ripple, FOX Business has learned.

People close to the matter say the New York Department of Financial Services has indicated to Ripple it will approve the product and the company is eyeing a possible launch date of Dec. 4. If approved, as expected, Ripple will be allowed to legally offer its stablecoin called RLUSD to the public, positioning it as a major player in New York’s regulated digital finance market and the wider stablecoin ecosystem.

Press officials for Ripple and the financial services department, known by its acronym, NYDFS, had no comment.

Ripple’s core business centers around its decentralized global payments network, RippleNet, which uses blockchain technology to provide faster, cheaper, and more efficient cross-border payment solutions for banks and businesses. It's billed as an alternative to the global bank settlement system called SWIFT. Ripple's native token XRP serves as a bridge currency to settle those transactions, but the token is currently in regulatory limbo in the U.S. as the Securities and Exchange Commission continues to argue in court that it's an unregistered security.

The case, now in the appeals phase in the Second Circuit, could be dropped by the crypto-friendly Trump Administration once it assumes power in January. In the meantime, with its future uncertain, XRP has been subject to volatile price swings.

Trump's Former Cftc Chair Eyed For 'Crypto Czar' Role

Read On The Fox Business App

In 2020, XRP’s price fell more than 50% and its market cap lost $16 billion when the SEC sued Ripple for allegedly violating securities laws by selling XRP without first registering those sales with the commission. The price has largely remained under $1 in the nearly four years Ripple has been locked in legal combat with the SEC.

XRP saw a massive jump in the weeks following Donald Trump's victory on Nov. 5 on hopes that he will fulfill his promise to ease crypto regulation and make the U.S. the ‘crypto capital of the planet.’

Today, XRP is trading at $1.70, making it the fifth largest cryptocurrency in the world with over a $99 billion market cap.

By issuing a regulated stablecoin, Ripple will be able to offer a steady alternative to XRP for customers that want to use digital currencies without exposure to volatility and regulatory uncertainty. The move will also put Ripple in direct competition with other established U.S. stablecoin issuers like Circle, Paxos and Gemini.