What is Ripple USD?
Ripple USD (RLUSD) is a stablecoin pegged to the US dollar at a 1:1 ratio, launched in late 2024 by the company developing the XRP Ledger. The product was created primarily for corporate and cross-border transactions.
How It Works
The token is issued under the oversight of New York State's financial regulator and is backed by dollar deposits, short-term US Treasury securities, and cash equivalents. RLUSD operates simultaneously on XRP Ledger and Ethereum, is used in payment corridors alongside XRP, and serves as collateral on institutional platforms.
Pros and Cons
- Pros: strict regulatory status, integration with existing payment infrastructure, institutional focus.
- Cons: lower adoption compared to market leaders, dependence on a single company, typical stablecoin issuer risks.