Ripple's RLUSD Stablecoin Expands Reach Internationally
Ripple's entry into the stablecoin market has been met with interest and scrutiny. The company launched RLUSD, its dollar-pegged token, in December 2024 as a response to institutions seeking a compliant dollar rail for on-chain transactions. Unlike other stablecoins, RLUSD is issued by Standard Custody & Trust Company, a Ripple Labs subsidiary, and operates under a limited-purpose trust company charter granted by the New York State Department of Financial Services.
The token's value is backed by cash, US Treasuries, and other cash equivalents held in segregated accounts. Ripple has partnered with Bank of New York Mellon to handle primary custody of these reserves. Monthly third-party attestations are published to provide transparency into the reserve assets backing RLUSD.
RLUSD is not a replacement for XRP, but rather a complementary token designed to cater to institutional needs. It is currently available on several platforms, including Kraken, Binance, Bybit, and Uphold, among others. The token's market capitalization stands at around $1.59 billion, ranking it roughly 40th among all cryptocurrencies.
Ripple has made significant strides in expanding RLUSD's reach internationally. In Japan, the company secured approval from the Japan Financial Services Agency to operate as a new type of electronic payment instrument. Transfers are capped at approximately one million yen, or about $6,200, per transaction under the current approval.