tl;dr
- XRP Ledger EVM enables Ethereum-compatible smart contracts, supporting DEXs, NFTs, and stablecoins with XRP used for gas fees.
- RLUSD is a fiat-backed stablecoin pegged 1:1 to the US dollar, fully backed by cash reserves and US government bonds.
- Approved by NYDFS, RLUSD ensures compliance and transparency through monthly BPM-audited reserve attestations.
- Regulatory compliance makes RLUSD ideal for Web3 companies in New York and the USA.
- RLUSD's future adoption depends on its unique compliance and utility in the competitive stablecoin market.
A Brief Introduction to XRP EVM
The XRP Ledger Ethereum Virtual Machine (EVM) sidechain expands XRPL's capabilities by enabling Ethereum-compatible smart contracts. Gas on XRP EVM is paid in the form of XRP token. As an EVM-compatible chain, it supports DEXs, NFTs, and stablecoins, fostering interoperability and broader use cases.
In this blog post, we’ll discuss Ripple’s new stablecoin Ripple USD (RLUSD) in depth.
What is RLUSD?
RLUSD is a fiat-backed stablecoin issued by Standard Custody & Trust Company, LLC (SCTC), a Ripple subsidiary. RLUSD is pegged 1:1 to the US dollar, ensuring stability and reliability for users. The stablecoin is fully backed by cash reserves and cash-equivalent assets, including US dollar deposits and short-term US government bonds.
A key milestone in RLUSD's development is its approval by the New York Department of Financial Services (NYDFS), underscoring its regulatory compliance and trustworthiness. RLUSD offers utility and versatility by being available on two major blockchains: the XRP Ledger and Ethereum.
Additionally, plans are in place to expand RLUSD's availability to other blockchains, including Ethereum, enhancing its interoperability and accessibility.
Read more about stablecoins here
Find out why some stablecoins depeg.
How RLUSD Works
RLUSD operates as a fully fiat-backed stablecoin, with each token backed 1:1 by US dollars or equivalent reserves held in transparent vaults. Ripple ensures trust through monthly third-party audited attestations by BPM, verifying the reserves' sufficiency and transparency. This structure guarantees RLUSD's stability and reliability for users.
Where to Buy or Trade RLUSD
RLUSD can be bought or traded globally through partnerships with leading exchanges and platforms, including Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish. These platforms provide secure and accessible avenues for acquiring RLUSD across regions.
Benefits of Using RLUSD
RLUSD offers unmatched compliance, having passed rigorous audits by the New York Department of Financial Services (NYDFS). Combined with monthly third-party audited attestations by BPM, it ensures transparency and trust. This regulatory assurance makes RLUSD an ideal stablecoin for Web3 companies in New York and across the United States.
RLUSD vs. Other Stablecoins
RLUSD, USDT, USDC, and DAI are all stablecoins, aiming to maintain a stable price pegged to the US dollar. However, they differ in their underlying mechanisms. USDT and USDC are primarily backed by reserves of US dollars and other assets, while DAI is an algorithmically governed stablecoin overcollateralized with cryptocurrencies. RLUSD, being native to the XRP EVM, leverages the XRP ecosystem and offers unique features like potentially lower transaction fees and faster speeds within the XRP Ledger.
The Future of RLUSD
The future of RLUSD hinges on user adoption in a crowded stablecoin market. For example, PayPal's stablecoin, PYUSD, was initially highly anticipated but wasn't widely adopted after launch. However, RLUSD’s strong compliance and regulatory approval position it uniquely to support Web3 projects in the USA. These factors may drive its adoption and establish RLUSD as a trusted stablecoin choice.
