What Is RLUSD?
RLUSD, also known as Ripple USD, is a stablecoin pegged to the value of the United States Dollar (USD). Issued by Ripple, RLUSD is designed to maintain a stable value of $1, providing users with a dependable medium for transactions and value transfer. Backed by real reserves, including dollar deposits, treasury bills, and money market funds, RLUSD ensures its reliability and stability.
Operating on the XRP Ledger and Ethereum blockchains, RLUSD combines speed, low transaction fees, and accessibility. With its versatility, RLUSD supports a wide range of financial use cases, including international payments, DeFi platforms, and liquidity provision, making it a valuable tool for businesses, developers, and individuals in the crypto economy.
What Is a Stablecoin?
A stablecoin is a type of cryptocurrency that is tied to a stable asset, such as the US dollar or gold. This link helps maintain a relatively steady value, reducing the volatility often seen in other cryptocurrencies like Bitcoin or Ethereum. Stablecoins are widely used for payments, transfers, and as a safe haven during times of market uncertainty.
You can learn more about what stablecoins are and how they work in our article: What Is Stablecoin: The Digital Currency Revolution.
History of RLUSD: How Ripple Created the Stablecoin of the Future
RLUSD was created by Ripple, a company that has been developing technologies for fast and convenient value exchange since 2012. Ripple aimed to make international transfers simpler, faster, and cheaper, and RLUSD became part of this solution. Officially launched in December 2024, this stablecoin was designed to provide people with a stable digital currency tied to the US dollar, suitable for both everyday payments and business use.
RLUSD operates on the XRP Ledger and Ethereum, leveraging XRP the native token of XRPL, for fast and cost-effective transactions. This makes RLUSD a versatile tool for both individuals and businesses. It helps people store and send money while enabling companies to integrate payments seamlessly into their systems.
The launch of RLUSD marked an important step in Ripple’s journey toward creating the next generation of financial technology. Notably, the stablecoin received approval from the New York Department of Financial Services (NYDFS), highlighting its compliance with strict regulatory standards and reinforcing trust in this digital asset.
Key Features of Ripple USD
RLUSD stands out with a range of unique characteristics that make it a convenient and practical tool in the world of cryptocurrency.
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Stable Value: RLUSD is pegged to the US dollar, ensuring a predictable and steady value. This makes it a reliable choice for transactions and storing funds.
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Multi-Blockchain Support: RLUSD is available on multiple blockchains, including XRP Ledger (XRPL) and Ethereum (ERC-20). This compatibility allows users to easily access it through various wallets, DeFi applications, and exchanges.
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Fast Transactions: Thanks to the advanced technology of the blockchains it uses, RLUSD enables transactions that are nearly instant and come with minimal fees, making transfers quick and cost-effective.
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Advanced Financial Capabilities: RLUSD integrates with smart contracts, enabling the automation of financial processes and fostering the development of innovative solutions within the decentralized finance (DeFi) ecosystem.
How RLUSD Differs From Leading Stablecoins USDT and USDC
Although RLUSD, USDT, and USDC are all pegged to the US dollar, RLUSD offers unique advantages. Unlike USDT and USDC, which primarily operate on Ethereum and other blockchains, RLUSD utilizes the fast and low-cost XRP Ledger alongside the extensive DApp ecosystem of Ethereum.
Transaction Speed: Transactions with RLUSD on the XRP Ledger are confirmed in less than 3–5 seconds, while transactions with USDT or USDC on Ethereum can take 15 seconds to several minutes, depending on network congestion.
Lower Fees: RLUSD offers significantly lower transaction fees on the XRP Ledger compared to USDT or USDC on Ethereum.
Regulatory Compliance: Ripple emphasizes strict adherence to global regulatory standards, making RLUSD a reliable choice for institutional clients.
Use Cases for RLUSD
RLUSD expands the possibilities of digital assets, providing efficient and convenient solutions for various financial needs. Here are the key areas where RLUSD is already being used:
1. International Payments
RLUSD offers a fast and cost-effective way to send money across borders. With no intermediaries and minimal fees, transactions are processed almost instantly. This makes it beneficial for companies operating in multiple countries and for migrants who regularly send money home.
2. Access to DeFi Platforms
RLUSD easily integrates with popular decentralized finance (DeFi) platforms on XRP Ledger and Ethereum. It can be used for staking, lending, borrowing, or participating in liquidity pools. The stability of RLUSD minimizes risks, making it a reliable asset for DeFi strategies.
3. Payments for Merchants
Merchants can use RLUSD to speed up payment processing and reduce transaction costs. This stablecoin helps avoid the high fees and delays associated with traditional banking systems. RLUSD is especially useful in regions with limited banking infrastructure.
4. Trading and Liquidity
RLUSD is a convenient tool for traders looking to protect their assets from market volatility. Its high liquidity allows for efficient trading and enables strategies like arbitrage or long-term asset storage.
These examples demonstrate how RLUSD optimizes financial processes and expands the use of cryptocurrencies.
Ripple USD for Business
Popular Formats of Ripple USD
RLUSD is issued on two major blockchain networks — XRPL and Ethereum. These networks were chosen for their unique advantages, making RLUSD versatile for various use cases. On XRPL, RLUSD offers high speed and minimal fees, while Ethereum enables the use of the token in smart contracts and decentralized applications.
RLUSD on Ripple (XRPL)
The XRPL network stands out for its reliability and performance:
- Speed: Transactions are confirmed in 3–5 seconds.
- Low Cost: Transaction fees are as low as $0.0002.
- Scalability: Supports over 1,500 transactions per second.
RLUSD on XRPL is ideal for fast and scalable solutions.
RLUSD on Ethereum
On the Ethereum platform, RLUSD is implemented as an ERC-20 token. The network offers:
- Flexibility: The ability to integrate into applications and services.
- High Security: Ensured through third-party audits.
- Key Management Functions: Token issuance and burning are controlled via multi-signature wallets.
These two platforms provide RLUSD with a unique combination of stability, speed, and scalability, making it a powerful tool for users and businesses alike.
Quick Guide to Getting Started With RLUSD
Getting started with RLUSD is easy. Follow these simple steps to confidently use the RLUSD stablecoin:
Create a RLUSD Wallet
Setting up a wallet for RLUSD is quick and simple. Visit RLUSD Wallet, click the “Download Now” button at the top of the page, and follow the instructions to create a new wallet. Make sure to securely store your seed phrase in a safe place — it’s the key to accessing your funds.
Obtain RLUSD
Once your wallet is ready, you’ll need to add RLUSD tokens to it. You have several options: ask friends to send you RLUSD, transfer it from your exchange account, or purchase RLUSD directly in the wallet app using a credit card through Gem Wallet. This convenient option saves time and ensures accuracy through automated processing.
Store RLUSD
Keep your RLUSD secure in Gem Wallet for maximum privacy and safety. As a self-custody wallet with open-source code, it provides the best protection for your digital assets, giving you full control over your funds.
Manage Assets
Easily manage your assets with Gem Wallet. Use RLUSD for transactions, explore other stablecoins, or interact with entire blockchains. From simple transfers to advanced features like staking, WalletConnect, or interacting with DEXs, everything you need is in one app.
Swap RLUSD
RLUSD is your gateway to the world of cryptocurrencies and tokens. Effortlessly swap RLUSD for other assets, including popular tokens or emerging crypto projects. The process is straightforward and integrated directly into the wallet app.
By following these steps, you can enjoy all the benefits RLUSD offers, making your crypto experience safe and efficient.
