Ripple has long stood at the forefront of blockchain innovation, empowering financial institutions, enterprises, and governments to move, manage, and tokenize value with greater speed, transparency, and efficiency. For over a decade, the company has worked to realize its vision of the Internet of Value—a world where money flows as freely as information.
Now, Ripple takes a pivotal step forward with the introduction of Ripple USD (RLUSD), a regulated, fiat-backed stablecoin designed to maintain a one-to-one value with the U.S. dollar. Built with compliance, security, and institutional needs in mind, RLUSD represents a new era in digital asset infrastructure—one that bridges traditional finance and blockchain technology seamlessly.
The Need for a Trusted Stablecoin
The digital asset ecosystem has grown from a niche innovation into a multi-trillion-dollar global market. As decentralized finance (DeFi), real-world asset (RWA) tokenization, and cross-border payments evolve, the demand for a reliable, liquid, and stable store of value on blockchains has never been greater.
Stablecoins—digital assets pegged to real-world assets like the U.S. dollar—have emerged as critical tools in this transformation. Among them, fiat-backed stablecoins are widely regarded as the most secure and transparent, especially when backed by regulated reserves and subject to independent audits.
Despite their utility, the stablecoin market remains highly concentrated, with a few dominant issuers controlling nearly 90% of total market capitalization. This centralization poses systemic risks. The launch of RLUSD addresses this imbalance by introducing a new, compliant entrant built on trust, regulatory oversight, and enterprise-grade infrastructure.
👉 Discover how RLUSD is redefining digital dollar stability and accessibility.
Introducing Ripple USD (RLUSD)
RLUSD is a multi-chain stablecoin natively issued on both the XRP Ledger (XRPL) and Ethereum networks. This dual issuance enables RLUSD to leverage the unique strengths of each blockchain:
- On XRPL: High-speed transactions (settled in 3–5 seconds), ultra-low fees (~$0.0002 per transaction), and scalability (1,500+ TPS).
- On Ethereum: Full smart contract programmability, enabling integration with DeFi protocols, lending platforms, and RWA ecosystems.
RLUSD is issued by Standard Custody & Trust Company, LLC (SCTC), a wholly-owned subsidiary of Ripple and a New York State-chartered limited-purpose trust company regulated by the New York Department of Financial Services (NYDFS). This regulatory foundation ensures RLUSD adheres to the highest standards in consumer protection, reserve management, and compliance.
Core Features of RLUSD
- 1:1 USD Backing: Fully backed by U.S. dollars and permitted cash equivalents.
- Segregated Reserves: Held in protected accounts for the benefit of stablecoin holders.
- Monthly Attestations: Independent CPA audits published regularly for full transparency.
- Enterprise-Grade Security: Multi-signature controls and OFAC-compliant freezing capabilities.
- Regulatory Compliance: Built in alignment with NYDFS stablecoin guidelines.
Regulatory Framework and Reserve Transparency
One of RLUSD’s defining strengths is its regulatory clarity. Unlike many stablecoins operating in gray areas, RLUSD is issued under a clear legal and compliance framework.
NYDFS Oversight
As a limited-purpose trust company, SCTC is subject to rigorous oversight by the NYDFS, ensuring:
- Timely Redemption: Holders can redeem RLUSD for USD at par value.
- Reserve Safeguarding: Reserves must equal or exceed the total outstanding supply daily.
- Independent Verification: Monthly attestations by certified public accountants confirm reserve adequacy.
Reserve Composition
The RLUSD reserve consists of:
- U.S. dollars
- Government money market funds
- Short-term U.S. Treasury Bills
These assets are held in segregated accounts at NYDFS-approved custodians and depositories, minimizing counterparty risk and ensuring liquidity.
All attestation reports are publicly available, reinforcing RLUSD’s commitment to transparency and accountability—key pillars for institutional adoption.
Key Use Cases for RLUSD
RLUSD is not just another stablecoin; it's a foundational asset designed for real-world utility across multiple financial domains.
B2B Cross-Border Payments
Ripple’s payments network already serves over 50 countries with more than $70 billion in transaction volume across 35 million+ lifetime transactions. By integrating RLUSD as a settlement asset:
- Businesses gain access to near real-time settlements.
- Transaction costs are drastically reduced.
- Liquidity management improves through faster clearing cycles.
When paired with XRP as a bridge currency, RLUSD enhances Ripple’s existing infrastructure, offering customers faster, cheaper, and more predictable international transfers.
👉 See how RLUSD is accelerating global business payments.
Foreign Exchange (FX) Markets
The global FX market sees over $7 trillion in daily volume, yet remains plagued by inefficiencies—high spreads, slow settlements, and opaque pricing—especially for smaller institutions.
RLUSD enables:
- Atomic settlement of trades on-chain
- Reduced counterparty risk
- Near-instant finality
- Lower operational costs
By serving as a digital dollar proxy, RLUSD can streamline FX operations and democratize access to global markets.
Global Access to a Digital Dollar
In economies with volatile local currencies, access to a stable U.S. dollar alternative is transformative. RLUSD provides:
- A stable store of value for individuals and SMEs
- Protection against inflation
- Low-cost remittances to family and friends
- Financial inclusion for the unbanked and underbanked
With Ripple’s presence in 90+ payout markets (crypto and fiat), RLUSD can serve as a trusted gateway to global finance.
Trade Settlement for Banks and Fund Managers
Traditional settlement processes can take days due to intermediaries and time-zone delays. RLUSD enables:
- Real-time settlement of securities and derivatives
- Reduced counterparty exposure
- Improved capital efficiency
- 24/7 operability
Financial institutions can use RLUSD to modernize post-trade workflows and reduce systemic friction.
Real-World Asset (RWA) Tokenization
Tokenizing assets like real estate, bonds, or commodities unlocks liquidity but introduces pricing volatility. RLUSD acts as a stable pricing mechanism and settlement layer for RWA platforms, ensuring:
- Predictable valuations
- Efficient cross-border trading
- Investor confidence through regulatory compliance
As RWA markets grow, RLUSD is positioned to become a preferred settlement currency.
On-Ramps and Off-Ramps
Acquiring digital assets often involves friction—KYC hurdles, high fees, slow processing. RLUSD simplifies this by serving as a:
- Low-volatility entry point to crypto
- Fast settlement rail between fiat and digital ecosystems
- Trusted asset for institutional onboarding
With Ripple’s existing infrastructure, RLUSD can power seamless on- and off-ramp experiences across exchanges, wallets, and payment platforms.
Why Institutions Choose RLUSD
A survey of over 500 enterprises and financial institutions identified three key factors driving stablecoin adoption:
- Trustworthiness
- Transparency
- Innovation
RLUSD excels in all three:
- Backed by a regulated U.S. trust company
- Monthly public reserve attestations
- Built on cutting-edge blockchain technology with enterprise-grade security
These traits align perfectly with institutional requirements for compliance, risk management, and operational resilience.
Frequently Asked Questions (FAQ)
Q: What is Ripple USD (RLUSD)?
A: RLUSD is a U.S. dollar-backed stablecoin issued by Standard Custody & Trust Company (SCTC), a regulated subsidiary of Ripple. It is designed to maintain a 1:1 value with the USD and is available on the XRP Ledger and Ethereum blockchains.
Q: Is RLUSD regulated?
A: Yes. RLUSD is issued under the oversight of the New York Department of Financial Services (NYDFS) in accordance with stablecoin regulatory guidelines. SCTC holds a limited-purpose trust charter and undergoes regular audits.
Q: How is RLUSD backed?
A: RLUSD is backed 1:1 by U.S. dollars and permitted cash equivalents such as short-term U.S. Treasury Bills and government money market funds. Reserves are held in segregated accounts at approved institutions.
Q: Can RLUSD be frozen or restricted?
A: Yes. In compliance with U.S. sanctions regulations (OFAC), SCTC can freeze RLUSD associated with addresses on the Specially Designated Nationals (SDN) list or involved in illicit activity.
Q: Where can I use RLUSD?
A: RLUSD is designed for use in cross-border payments, FX trading, DeFi applications, RWA settlements, and on/off-ramp services. It is available to institutional clients meeting KYC/AML requirements.
Q: How does RLUSD differ from other stablecoins?
A: RLUSD combines Ripple’s proven enterprise blockchain expertise with strict regulatory compliance, transparent reserves, and multi-chain deployment—making it uniquely suited for institutional adoption.
The Future of Digital Finance
RLUSD marks a significant milestone in Ripple’s mission to build the Internet of Value. By combining the stability of the U.S. dollar with the speed and transparency of blockchain technology, RLUSD offers a secure, scalable, and compliant solution for the next generation of financial services.
From global payments to DeFi innovation, RLUSD is engineered to meet the demands of institutions, developers, and individuals alike—driving efficiency, inclusion, and trust in the digital economy.
As the financial world continues its shift toward tokenization and instant settlement, RLUSD stands ready as a cornerstone asset for the future.
👉 Explore how RLUSD is shaping the future of digital dollars today.