Ripple's RLUSD Grapples with Regulatory Ambiguity Ahead of Bank Consortium Launch

The world of stablecoins is complex and fragmented, with different issuers operating under various regulatory structures. Among the three major dollar-backed stablecoins, RLUSD (RLUSD), USDC (USDC), and Tether (USDT) have distinct approaches to reserve management and regulation.

Ripple's RLUSD holds a New York Department of Financial Services (NYDFS) limited-purpose trust charter, which requires segregated reserves and monthly attestation from an independent CPA firm. This means that if Ripple were to fail, the segregated reserves would be legally separate from the company's assets, giving holders priority over other creditors.

Ripple also received a conditionally approved national trust charter from the Office of the Comptroller of the Currency (OCC) in December 2025. However, this approval is still conditional and requires Ripple to meet certain capital, governance, and operational commitments before it becomes unconditional.

In contrast, Circle's USDC has received full OCC approval and also holds a NYDFS trust charter, making it one of the few stablecoins with both state and federal regulatory oversight. Tether, on the other hand, operates without a US charter and is subject to offshore insolvency laws in case of failure.