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Ripple Breaks Down Stablecoin Rules as Institutions Evaluate RLUSD

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Compiled by KHAO Editorial — aggregated from 2 sources. See llms.txt for citation guidance.

◎ Multiple-sources

Kevin Helms.

Stablecoin licenses carry different reserve and oversight requirements, Ripple emphasized as it outlined RLUSD’s regulatory structure.

Key facts

Summary

Protections for stablecoin holders depend on the issuer’s actual license, reserve requirements, and supervision, Ripple argued in a Sept. 11 blog post. This distinction affects how dollar-backed tokens maintain their backing and how holders can exchange them for cash. “A money transmitter license, a state trust charter, and prudential supervision by a banking regulator all involve government oversight, but they carry different capital requirements, different reserve rules, and different consequences if an issuer fails.” RLUSD is issued by Ripple subsidiary Standard Custody & Trust Company under a New York Department of Financial Services limited-purpose trust charter.

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