Crypto Gloss

Ripple USD (RLUSD)

Definition:

Ripple USD (RLUSD) is a regulated, USD-backed stablecoin launched by Ripple Labs in December 2024 — receiving NYDFS trust-charter approval through Ripple’s Standard Custody & Trust Company entity — operating on both the XRP Ledger (XRPL) natively and Ethereum as an ERC-20 token, fully collateralized by U.S. dollar deposits, treasuries, and cash equivalents with monthly attestation reports, designed to serve as the fiat-leg settlement asset in Ripple’s Payments platform for cross-border institutional money transfers — embedding Ripple’s stablecoin directly into its existing enterprise payments network that already processes billions in annual volume for banks and payment providers. RLUSD is distinct from XRP (Ripple’s native token) in that it is a stablecoin pegged to the USD, while XRP is a freely-traded asset.

Background: Why Ripple Launched RLUSD

Ripple Payments (formerly RippleNet/ODL):

Ripple’s core enterprise product enables banks and payment providers to send cross-border payments using a “bridge asset” to avoid pre-funding correspondent accounts. XRP has served as that bridge asset in the “On-Demand Liquidity” (ODL) product. However, many enterprise customers are uncomfortable using a volatile asset (XRP) as a settlement bridge.

RLUSD solves this:

By offering a USD-pegged stablecoin on the XRP Ledger, Ripple can serve clients who want the speed and cost benefits of XRPL settlement without exposure to XRP price volatility. RLUSD can serve as:

  • The fiat-leg of cross-border payments (send USD → settle in RLUSD on XRPL → recipient receives local currency)
  • Collateral on DeFi protocols
  • A stablecoin for XRPL-native DeFi (Ripple’s AMM, NFT marketplace)

Regulatory Approval

NYDFS approval:

RLUSD received conditional approval from the NYDFS in December 2024 — the same regulator that licenses Paxos (PAXG, PYUSD), Gemini Dollar (GUSD), and the now-defunct BUSD. This is one of the most credible stablecoin regulatory approvals available in the United States.

Issuance entity:

Ripple operates Standard Custody & Trust Company as its trust company subsidiary, which is the regulated issuer holding the RLUSD reserves.

Reserve Structure

  • 100% backed by USD deposits, U.S. government treasuries, and cash equivalents
  • Monthly independent attestation reports (similar to USDC, PYUSD)
  • Reserves held in segregated accounts, separate from Ripple Labs’ operating funds
  • Biannual full audits planned

Deployment

XRP Ledger:

RLUSD issued natively on XRPL — fully integrated with XRPL’s DEX, payment channels, and AMM (Automated Market Maker, launched in 2024). XRP validators can route RLUSD payments alongside XRP transactions.

Ethereum:

Standard ERC-20 deployment for compatibility with the Ethereum DeFi ecosystem, lending protocols, and centralized exchanges.

Bridge:

Ripple operates cross-chain bridge infrastructure to move RLUSD between XRPL and Ethereum.

Relationship to XRP

RLUSD and XRP are fundamentally different assets issued by the same company:

XRP RLUSD
Type Utility/bridge token USD stablecoin
Peg Free-floating $1 USD
Supply Fixed 100B (max) Dynamic (minted/burned)
Volatility High ~0%
Use case Bridge asset (ODL), speculation Payment settlement, fiat leg
Backed by Nothing (pre-mined) USD/Treasuries

Ripple has long faced the SEC’s allegation that XRP is an unregistered security. RLUSD is a separate product that does not face the same legal characterization (a stablecoin is a payment instrument, not a speculative asset).

Social Media Sentiment

RLUSD is received positively among the XRP community (the “XRP Army”) as validation of Ripple’s enterprise payments strategy and a complement to XRP. Broader crypto sentiment is mixed — DeFi users note that the XRPL native DeFi ecosystem is small, so RLUSD’s actual DeFi utility is limited compared to USDC/USDT. Its NYDFS approval is consistently cited as a credibility advantage over many competing stablecoins.

Last updated: 2026-04

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