What Is Ripple USD (RLUSD)?

Introduction

For more than a decade, Ripple has been a key player in applying blockchain technology to improve the global financial system, most notably through its native digital asset, XRP. As the crypto industry has matured, however, demand has grown for digital assets that combine blockchain efficiency with price stability and regulatory compliance.

Financial institutions and large enterprises want the speed, transparency, and programmability of blockchain—but without the volatility typical of cryptocurrencies. To meet this need, Ripple introduced Ripple USD (RLUSD), a stablecoin designed to bridge traditional finance with the modern digital economy.

What Is Ripple USD (RLUSD)?

Ripple USD (RLUSD) is a U.S. dollar–pegged stablecoin issued and managed by Standard Custody & Trust Company, LLC, a Ripple subsidiary. RLUSD is designed to maintain a stable value of approximately $1.00 per token.

RLUSD is built with institutional and enterprise use cases in mind. Leveraging Ripple’s long-standing relationships with banks and financial institutions worldwide, RLUSD aims to deliver a compliant, secure, and scalable “digital dollar” suitable for high-volume transactions such as cross-border settlements and large corporate transfers.

How Does RLUSD Work?

RLUSD is structured around transparency, security, and trust—key requirements for institutional adoption.

1. Reserves

The credibility of any stablecoin depends on the quality of its reserves. RLUSD is fully backed, with each token supported by assets of equivalent value, including:

• U.S. dollar deposits

• Short-term U.S. Treasury securities

• Other highly liquid assets

These reserves are held in segregated accounts with U.S.-based custodians, ensuring that user funds are kept separate from Ripple’s operating capital.

2. Regulation and Transparency

RLUSD is issued under a Trust Company Charter regulated by the New York Department of Financial Services(NYDFS)—one of the most stringent financial regulators in the crypto industry.

This regulatory framework enforces strict standards around consumer protection, compliance, and anti-money laundering (AML). Ripple also publishes monthly attestation reports, confirming that RLUSD reserves fully match the circulating supply.

3. Multi-Chain Issuance

To maximize accessibility and utility, RLUSD is issued natively on two major blockchain networks:

• XRP Ledger (XRPL): Optimized for fast, low-cost payments and settlements

• Ethereum: Enabling integration with DeFi protocols, smart contracts, and a wide range of decentralized applications

This multi-chain approach allows RLUSD to operate seamlessly across both payment-focused and DeFi-centric ecosystems.

Potential Use Cases

RLUSD is designed to serve as core financial infrastructure across multiple use cases, including:

• Cross-border payments: Near-real-time transfers with lower costs compared to traditional systems like SWIFT

• On-ramp / Off-ramp solutions: A bridge between fiat currencies and blockchain-based assets

• DeFi and tokenization: A stable settlement asset for trading pairs, lending protocols, and real-world asset (RWA) tokenization

• Global settlement: Institutional use in FX markets and derivatives settlement

Conclusion

The launch of RLUSD represents a significant step in Ripple’s strategy to expand its value-transfer ecosystem. By pairing a regulated, dollar-backed stablecoin with XRP and blockchain infrastructure, Ripple now offers a more complete toolkit for modern finance.

RLUSD delivers price stability, while blockchain technology enables speed, transparency, and efficiency. As regulatory clarity around crypto assets continues to improve, compliant stablecoins like RLUSD are well positioned to play an increasingly important role in the future of global finance.