What is Ripple USD (RLUSD)?
Ripple USD (RLUSD) is a stablecoin issued by Ripple, the company behind the XRP cryptocurrency and XRP Ledger. Launched in December 2024 with approval from the New York Department of Financial Services, RLUSD is pegged 1:1 to the US dollar and available natively on both XRP Ledger and Ethereum.
Key Facts
What is Ripple USD?
Ripple USD (RLUSD) is a fiat-backed stablecoin designed for enterprise-grade payments and decentralized finance. Each token is redeemable for $1 and is backed by reserves held in segregated accounts. RLUSD operates on both the XRP Ledger — a fast, low-cost payment network — and Ethereum, giving users flexibility to choose their preferred blockchain for transactions and DeFi activities.
A key differentiator for RLUSD is its regulatory pedigree. It was approved by the New York Department of Financial Services (NYDFS) before launch, one of the strictest financial regulators in the United States. Ripple publishes monthly third-party attestation reports verifying that reserves backing RLUSD meet or exceed the total tokens in circulation.
RLUSD is designed to serve as a bridge asset for cross-border payments, a stable settlement layer for tokenized assets, and a reliable on-ramp/off-ramp between fiat and crypto. It complements XRP in Ripple's ecosystem, with XRP providing liquidity for currency exchange and RLUSD providing dollar-denominated stability.
Who Created RLUSD?
Ripple's Journey to Stablecoins
Ripple, the company behind the XRP Ledger and XRP cryptocurrency, was founded in 2012 by Chris Larsen and Jed McCaleb. Originally focused on cross-border payment solutions using XRP as a bridge currency, Ripple expanded into stablecoins to meet enterprise demand for dollar-denominated assets on blockchain.
The decision to launch RLUSD was driven by the growing institutional need for a regulated stablecoin integrated with Ripple's payment infrastructure.
The RLUSD Launch
Ripple announced its stablecoin plans in mid-2024 and secured NYDFS approval in late 2024. RLUSD officially launched in December 2024, initially available on the XRP Ledger and Ethereum. The launch represented Ripple's strategic expansion beyond pure payment protocols into the broader stablecoin market, positioning RLUSD as an enterprise-focused alternative to existing stablecoins.
Key Milestones
- • 2012: Ripple (then OpenCoin) founded by Chris Larsen and Jed McCaleb
- • 2023: Ripple announces plans to develop a US dollar stablecoin
- • 2024: RLUSD receives NYDFS approval and launches on XRP Ledger and Ethereum
- • 2025: RLUSD expands exchange listings and DeFi integrations
How RLUSD Works
RLUSD operates as a fully-backed stablecoin with a straightforward mint-and-redeem model, combined with the unique advantage of dual-chain issuance.
Reserve Backing
Every RLUSD token is backed 1:1 by reserves consisting of US dollar deposits, short-term US government Treasury bills, and other cash equivalents. These reserves are held in segregated trust accounts, meaning they are legally separated from Ripple's corporate funds.
An independent third-party accounting firm conducts monthly attestations to verify that reserves meet or exceed the total RLUSD in circulation.
Dual-Chain Architecture
RLUSD is issued natively on two blockchains: the XRP Ledger (XRPL) and Ethereum. On XRPL, RLUSD benefits from 3-5 second settlement times, minimal transaction fees (fractions of a cent), and access to the built-in XRPL decentralized exchange. On Ethereum, RLUSD is an ERC-20 token that can be used across the DeFi ecosystem including lending protocols, decentralized exchanges, and yield platforms.
Transparency and Attestation
Ripple has committed to publishing monthly third-party attestation reports for RLUSD reserves. These reports, prepared by an independent accounting firm, verify the composition and sufficiency of the reserve assets. This transparency model follows the standard set by other regulated stablecoins like USDC, providing users and institutions with confidence in the backing.
Maintaining the $1 Peg
RLUSD maintains its peg through the direct redeemability mechanism: authorized participants can mint new RLUSD by depositing USD, or redeem RLUSD for USD at par value. This arbitrage mechanism ensures that if RLUSD trades above $1, participants mint new tokens to sell at a profit (pushing the price down), and if it trades below $1, participants buy and redeem for USD (pushing the price up).
RLUSD vs Other Stablecoins
RLUSD enters a competitive stablecoin market. Here is how it compares to the two largest stablecoins:
| Feature | RLUSD | USDC | USDT |
|---|---|---|---|
| Issuer | Ripple | Circle | Tether |
| Backing | USD deposits, US Treasuries, cash equivalents | USD deposits, US Treasuries | Reserves (Treasuries, commercial paper, loans) |
| Blockchains | XRP Ledger, Ethereum | Ethereum, Solana, + 10 more | Ethereum, Tron, Solana, + 10 more |
| Primary Regulator | NYDFS | State regulators (US) | Various jurisdictions |
| Primary Use Case | Enterprise payments, cross-border settlement | DeFi, payments, institutional | Trading, global payments |
RLUSD's unique advantage is its native availability on the XRP Ledger, giving it access to Ripple's established cross-border payment network and institutional customer base. While USDC and USDT have far larger market caps and broader chain support, RLUSD targets the enterprise payment segment where Ripple has existing relationships.
Why RLUSD Has Value
As a stablecoin, RLUSD's value proposition is not price appreciation — it is designed to maintain a stable $1 value. Its value comes from utility: providing a dollar-denominated stable asset on the XRP Ledger and Ethereum for payments, trading, and DeFi.
RLUSD benefits from Ripple's established enterprise relationships with banks and payment providers worldwide. As these institutions increasingly adopt blockchain-based settlement, RLUSD provides them with a regulated, dollar-stable asset integrated into Ripple's payment infrastructure.
The NYDFS regulatory approval gives RLUSD credibility in the institutional market. For businesses that require regulatory clarity, RLUSD offers a stablecoin option backed by a well-funded company with clear regulatory standing in New York, one of the world's most important financial centers.
How to Buy RLUSD
RLUSD can be purchased on cryptocurrency exchanges that list it, or acquired through the XRPL decentralized exchange. Here is how to get started:
1Compare providers
Not all exchanges support RLUSD yet. Use coinvela to compare exchanges that list RLUSD, looking at fees, payment methods, and supported regions. Some platforms may offer RLUSD on both XRP Ledger and Ethereum.
2Create an account
Sign up on your chosen exchange and complete identity verification (KYC). Most exchanges require a government ID, proof of address, and a selfie. Verification typically takes minutes to hours.
3Fund your account
Deposit funds using your preferred method — bank transfer, credit card, or another cryptocurrency. Bank transfers usually have lower fees, while cards offer instant access.
4Buy RLUSD
Search for RLUSD on the exchange, enter the amount you want to buy, and confirm the transaction. Since RLUSD targets $1, the amount of RLUSD you receive should roughly equal your dollar deposit minus fees.
5Withdraw to Your Wallet (Optional)
For long-term holding or DeFi use, consider withdrawing your RLUSD to a personal wallet. Choose between an XRP Ledger wallet (for lower fees) or an Ethereum wallet (for DeFi access).
Next step: Compare RLUSD prices across exchanges to find the best price.
How to Store RLUSD
Wallet Options
RLUSD can be stored in any wallet that supports the XRP Ledger or Ethereum ERC-20 tokens:
- • Software wallets: XRPL wallets (XUMM/Xaman) for XRP Ledger RLUSD, or MetaMask/Rainbow for Ethereum RLUSD. Free and convenient for regular use.
- • Hardware wallets: Ledger devices support both XRPL and Ethereum tokens. Best for securing larger amounts offline.
- • Exchange wallets: Keep RLUSD on the exchange for easy trading. Convenient but you don't control the private keys.
Hardware Wallets
For maximum security, store your RLUSD on a hardware wallet. Ledger devices support both XRP Ledger and Ethereum tokens, while Trezor supports Ethereum ERC-20 tokens. Hardware wallets keep your private keys offline, protecting against online threats.
Protect Your Recovery Phrase
Whether using a software or hardware wallet, your recovery phrase (seed phrase) is the master key to your funds. Write it down on paper, store it in a secure location, and never share it digitally. If you lose your device, the recovery phrase is the only way to restore access to your RLUSD.
How to Use RLUSD (RLUSD)
Cross-Border Payments
RLUSD's primary design purpose is enterprise cross-border payments. Businesses using Ripple's payment network can use RLUSD for dollar-denominated settlement, avoiding the delays and costs of traditional correspondent banking. On the XRP Ledger, RLUSD transfers settle in seconds with negligible fees.
DeFi Applications
On Ethereum, RLUSD can be used across decentralized finance applications including lending, borrowing, and liquidity provision. RLUSD can serve as collateral, a trading pair, or a yield-earning asset in various DeFi protocols.
Trading and Hedging
Traders use stablecoins like RLUSD to park funds between trades without converting back to fiat. On the XRPL decentralized exchange, RLUSD provides a dollar-stable trading pair against XRP and other XRPL tokens. On centralized exchanges, RLUSD can be used similarly to USDC or USDT for entering and exiting positions.
Risks
While RLUSD is designed to be stable, it is not risk-free. Stablecoin risks include counterparty risk (Ripple's ability to maintain reserves), regulatory risk (changes in stablecoin regulation), and peg risk (temporary depegging during market stress). Always review the latest attestation reports and consider diversifying across multiple stablecoins.
Key People Behind RLUSD
RLUSD is backed by Ripple's experienced leadership team:
Brad Garlinghouse
CEO of Ripple since 2017. Garlinghouse has led Ripple through its SEC legal battle and expanded the company's product suite to include RLUSD. He has been instrumental in positioning Ripple as an enterprise blockchain payment company and championing the stablecoin's regulatory approval.
Monica Long
President of Ripple. Long has overseen Ripple's product strategy including the development of RLUSD. She has been a key advocate for regulated stablecoins and has led partnerships with financial institutions adopting Ripple's payment technology.
David Schwartz
Chief Technology Officer of Ripple and one of the original architects of the XRP Ledger. Schwartz has guided the technical integration of RLUSD on the XRP Ledger and ensures the stablecoin leverages the network's performance advantages for enterprise use cases.
Regulation Overview for RLUSD
RLUSD's Regulatory Framework
RLUSD operates under a clear regulatory framework, having received approval from the New York Department of Financial Services (NYDFS) prior to launch. This makes RLUSD one of the few stablecoins that secured regulatory blessing before entering the market, as opposed to others that operated first and sought regulatory clarity later.
Regulation by Jurisdiction
Stablecoin regulation varies by country, and RLUSD's availability depends on local rules:
United States: RLUSD is approved by the NYDFS and complies with New York's stablecoin requirements, including reserve composition rules and regular attestations. Federal stablecoin legislation may provide additional framework as it develops.
Canada: Canadian regulators have been cautious with stablecoins. RLUSD availability in Canada will depend on exchange listings and compliance with CSA (Canadian Securities Administrators) requirements for crypto assets.
European Union: Under MiCA (Markets in Crypto-Assets Regulation), stablecoins face specific requirements around reserves, governance, and consumer protection. RLUSD would need to comply with MiCA's asset-referenced token rules to be widely available in the EU.
Australia: Australia is developing its regulatory framework for crypto assets including stablecoins. ASIC (Australian Securities and Investments Commission) has indicated that stablecoins may be considered financial products depending on their structure.
RLUSD benefits from Ripple's established compliance infrastructure and NYDFS approval. As global stablecoin regulation matures, RLUSD's proactive regulatory approach positions it well for broader adoption. Always check the latest regulatory status in your jurisdiction before acquiring RLUSD.
FAQs About Ripple USD (RLUSD)
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