Ripple’s stablecoin, RLUSD, is making waves! It’s officially been ranked the most regulated stablecoin, beating out major players like Tether’s USDT and Circle’s USDC.
RLUSD: Number One in Trust and Regulation
Brad Garlinghouse, Ripple’s CEO, announced the news on X, highlighting the timing with the recent passing of the GENIUS Act. The ranking comes from Bluechip, a stablecoin rating agency, which gave RLUSD an impressive “A” rating. Bluechip considers RLUSD one of the safest stablecoins available.
Why the A Rating? It’s All About the Details
Bluechip’s high rating is based on several key factors:
- Strong Backing: RLUSD is backed by U.S. Treasury bills, money market funds, and bank deposits – all super low-risk assets.
- Strict Regulation: The New York Department of Financial Services (NYDFS) keeps a close eye on RLUSD, ensuring it meets high regulatory standards.
- Secure Custody: The Bank of New York Mellon, a giant in financial security custody, holds RLUSD reserves in segregated accounts. This means your money is safe even if Ripple faces financial trouble.
Bluechip broke down the rating into three categories: stability (0.91), management (0.84), and governance (0.86), all indicating very low risk.
How Other Stablecoins Stack Up
The competition didn’t fare as well:
- USDC (Circle): Ranked eighth with a B+, despite being a major player. Circle, like Ripple, is also pursuing a national banking license, which would further enhance USDC’s regulatory standing.
- USDT (Tether): Landed in 16th place with a D rating. This reflects concerns about its regulatory oversight, particularly since it’s issued outside the U.S. However, Tether is working on a US-compliant stablecoin to meet the GENIUS Act requirements.
In short, RLUSD’s top ranking showcases Ripple’s commitment to regulation and security, putting it ahead of the pack in the stablecoin market.