Ripple Details Regulatory Framework for RLUSD Stablecoin

Ripple has provided clarity on the regulatory and custodial structures behind its RLUSD stablecoin. The company's explanation outlines how RLUSD operates under a limited-purpose trust charter issued by the New York Department of Financial Services (NYDFS), with reserves held in cash and short-term U.S. Treasury bills, and custody handled by Bank of New York Mellon.

The NYDFS charter requires segregated reserves, imposes a fiduciary duty to holders, and mandates regular attestations by an outside CPA firm. These attestations confirm that reserves match liabilities at a specific point in time. Ripple emphasized that the assets backing RLUSD are legally separated from its own operating funds, intended to protect token holders in a worst-case scenario.

RLUSD also has a conditionally approved federal charter from the Office of the Comptroller of the Currency (OCC), which would move it into the federal tier of supervision once Ripple satisfies the attached conditions. A national trust charter carries bank-style oversight, including capital rules, examination authority, and resolution mechanics that separate customer money from a failing entity.

Compared to its competitors, USDC has both state and federal approval without conditions, while Tether operates without a U.S. charter or prudential supervisor. Ripple's disclosure aims to highlight the distinction between different regulatory pathways available to stablecoin issuers in the United States, emphasizing the stronger legal backing of RLUSD.