Ripple Coin is the first blockchain to receive approval from the Federal Reserve, making it one of the first cryptocurrency projects to be approved for regulation.
The new rule, which was announced on Monday, says that Ripple Coin “may not be used for any transaction with the Federal Deposit Insurance Corporation.”
Ripple was the first of several blockchain projects to receive the approval.
Ripple also became the first to receive a “fiat money” designation in the Federal Open Market Committee’s rule.
The FOMC rule requires projects that are designed to be a means of settling the value of the U.S. dollar, euros, and other fiat currencies to be listed on the exchange-traded fund (ETF) market.
That makes it a viable way to trade currencies without having to be on a central bank’s exchange.
Ripple is also listed on exchanges like Coinbase and Bitfinex, which allows users to trade their cryptocurrencies.
The ripple.org website was updated to reflect the new FOMCC rule.
