Ripple USD(RLUSD): Cross-border payment Stable Coin based on XRP Ledger and Ethereum

Introduction

Ripple USD(RLUSD) is reshaping the future of cross-border payments. This innovative stablecoin, based on XRPLedger and Ethereum, not only maintains a fixed value of 1:1 with the US dollar but also brings unprecedented efficiency to global financial transactions. As a regulatory-compliant stablecoin, how does RLUSD strike a balance between speed, low cost, and security? Let’s delve into this game-changing digital asset.

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##RLUSD: Revolutionary Innovation in the Stablecoin Field Ripple USD(RLUSD), as a new type of stablecoin, is bringing revolutionary changes to the field of cross-border payments. RLUSD, launched by Ripple, aims to maintain a fixed value of 1:1 with the US dollar. This stablecoin is not only issued natively on the XRP Ledger but also supports the Ethereum blockchain, providing users with a wider range of applications and greater flexibility.

The innovation of RLUSD lies in its combination of the stability of legal tender and the efficiency of blockchain technology. By using RLUSD, users can enjoy nearly real-time global payment services without having to consider the restrictions of bank business hours or holidays. This feature makes RLUSD particularly suitable for scenarios such as cross-border remittances and international trade settlements, greatly improving the efficiency of fund circulation.

In addition, RLUSD also provides users with a convenient channel for converting between fiat and stablecoins, making the bridge between the traditional financial system and the digital asset world more solid.

Mechanism of Operation: Collateralized Stablecoin

As a collateralized stablecoin pegged 1:1 to the US Dollar, the value of RLUSD is backed by an equivalent amount of US Dollar reserves. These reserves are managed by qualified custodians and undergo regular audits to ensure that the circulating supply of RLUSD matches the reserves.

RLUSD is issued by Standard Custody & Trust Company, LLC, a subsidiary of Ripple, fully backed by independent cash and cash equivalents reserves, and can be exchanged for US dollars at a 1:1 ratio. SCTC is a limited purpose trust company chartered by the New York State Department of Financial Services (NYDFS) to issue Ripple USD under its NYDFS charter, and complies with strict Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements.

According to official website data, as of March 6, 2025, the circulation of RLUSD reached 132.7 million US dollars, and the reserve fund reached 140.1 million US dollars. These reserves are composed of US dollars and low-risk investment assets, securely held in reputable financial institutions in the United States. Every month, a certified public accounting firm thoroughly inspects these reserves to ensure their accuracy and manages them properly through audit reports. This periodic verification process ensures that the stablecoin is trustworthy and maintains a stable value.

Compliance advantages, rich scenarios

Overall, RLUSD offers the following main advantages: Stability: Due to its 1:1 peg to the US dollar, RLUSD avoids the volatility of other cryptocurrencies, making it suitable for payments and value storage.

Speed and Cost Efficiency: Leveraging blockchain technology, RLUSD offers fast transaction speed and low costs, especially in cross-border payments.

Accessibility: RLUSD provides 24/7 global access, breaking through the limitations of traditional banking systems.

Compatibility: Running on both the Ripple and Ethereum blockchains provides greater flexibility for users and developers.

The application scenarios of RLUSD include but are not limited to: Cross-border payments and remittances: RLUSD can efficiently and cost-effectively handle international fund transfers, especially suitable for scenarios requiring fast settlement.

Trading: As a stablecoin, RLUSD can be used to trade other cryptocurrencies, providing a stable trading medium.

Store of Value: Users can hold RLUSD as digital dollars to protect its value from market fluctuations.

Access real-world assets: RLUSD can be used to purchase or trade tokenized assets on the Ripple blockchain, such as bonds or securities, providing new possibilities for investment. ##Conclusion RLUSD, as an innovative stablecoin in the field of cross-border payments, is reshaping the global financial trading landscape. In comparison to other stablecoins such as Tether(USDT) or USDCoin(USDC), RLUSD stands out for its dual-chain compatibility and integration with real-world assets. While USDT and USDC mainly operate on the Ethereum and other blockchains, RLUSD’s Ripple ledger support may give it a competitive edge in the cross-border payment field. With more platforms supporting RLUSD, it is poised to play a key role in future cross-border payments and digital financial ecosystems.

Risk Warning: Regulatory policy changes may affect the development of RLUSD, and market fluctuations may affect its stability. Users should pay close attention to relevant policies and market trends.

Author: Charle A., Gate.io Researcher *This article represents only the author’s point of view and does not constitute any trading advice. Investment carries risks, so decisions should be made carefully. *The content of this article is original, and the copyright belongs to Gate.io. Please indicate the author and source if you need to reprint, otherwise legal responsibilities will be pursued.