Ripple Clarifies Stablecoin Rules Amid Institutional Interest
Ripple has clarified the rules governing its stablecoin, RLUSD, as financial institutions evaluate its use for payments, settlement, and treasury operations.
The company emphasized that stablecoin licenses carry different reserve and oversight requirements, with Ripple's proposed federal trust bank still requiring final approval.
RLUSD is issued by Standard Custody & Trust Company under a New York Department of Financial Services limited-purpose trust charter, which includes segregated reserves and independent attestations to examine reserve disclosures.
The company also highlighted the distinction between money transmitter licenses, state trust charters, and federal supervision, noting that these involve different capital requirements, reserve rules, and consequences if an issuer fails.