TheBlock
RLUSD is Ripple's dollar-pegged stablecoin, issued on the XRP Ledger and designed for institutional settlement flows. It is a separate product from XRP itself, the native token used for transaction fees and liquidity on the XRPL.
Why it matters
RLUSD is structured as a regulated, reserve-backed instrument with monthly third-party attestations of the underlying assets. That positioning targets institutional payment-rail use cases rather than the DeFi trading flows that dominate USDC and USDT volume on Ethereum and Tron.
Market impact
The XRP Ledger's throughput and settlement costs shape RLUSD's profile: sub-second finality and fees denominated in fractions of a cent make it viable for cross-border B2B settlement where Ethereum gas costs would compress margins. The token's adoption trajectory will depend on bank-side integrations and any expansion to additional chains or institutional venues.
Frequently asked questions
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Is RLUSD the same as XRP?
No. RLUSD is a dollar-pegged stablecoin issued on the XRP Ledger. XRP is the native token used for transaction fees and liquidity on the XRPL; the two are separate products.
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What backs RLUSD?
RLUSD is structured as a regulated, reserve-backed instrument, with monthly third-party attestations of the underlying assets to verify the peg.
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Which blockchain does RLUSD run on?
RLUSD is issued on the XRP Ledger, benefiting from the network's sub-second finality and sub-cent transaction fees.
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How is RLUSD different from USDC or USDT?
RLUSD is designed for institutional payment-rail use cases and B2B settlement, whereas USDC and USDT see most of their volume on Ethereum and Tron in DeFi trading.
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Who is RLUSD's target user?
RLUSD targets banks and institutional payment providers, positioning itself for cross-border settlement flows where low fees and fast finality are critical.
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