Overview

This page outlines the key features of a stablecoin and provides an introduction to the Ripple USD (RLUSD) digital token.

What is a stablecoin?

A stablecoin is a type of digital token that is backed by real-world assets of equivalent value, such as fiat currency or gold. These tokens are called stablecoins because they are designed to keep their value stable, usually at a 1:1 rate with another asset. For example, a stablecoin can be linked to the value of the United States Dollar (USD), where each stablecoin represents 1 US dollar.

Stablecoin issuers provide services for deposits and withdrawals, enabling the exchange of tokens for the corresponding real-world currency or asset.

Ripple USD stablecoin

Ripple USD is a stablecoin issued by Standard Custody & Trust Company, LLC (SCTC), a subsidiary of Ripple. The stablecoin is fully backed by a segregated reserve of cash and cash equivalents, and is redeemable 1:1 for US dollars.

Ripple USD acts as an effective on and off-ramp, simplifying the bridge between conventional financial systems and innovative Web3 technologies in a secure, regulated environment. This stable and programmable token allows developers to seamlessly integrate Web3 payment solutions, effectively connecting traditional finance with modern decentralized applications.

SCTC, a limited purpose trust company chartered by the New York Department of Financial Services (NYDFS), issues Ripple USD under its NYDFS charter, and adheres to the strict Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements of the NY banking laws.

Reserves and attestation reports

Users can be confident that the Ripple USD stablecoin is both reliable and transparent about the reserves backing it. The reserves consist of a combination of US dollars and low-risk investment assets, securely held at highly reputable financial institutions in the U.S.

Every month, a leading accounting firm thoroughly checks these reserves to ensure they are accurate and properly managed via attestation reports. This regular validation process ensures that the stablecoin is trustworthy and maintains a steady value.

How to access Ripple USD?

Ripple USD is available to developers, businesses, and institutions:

• Developers: Developers can integrate Ripple USD into their applications on both the Ethereum and XRP Ledger blockchain networks.
• Businesses and institutions: Businesses and institutions can onboard with SCTC to purchase Ripple USD stablecoin directly.

  Note

  Contact a SCTC representative to learn more about how to purchase Ripple USD.