Ripple's stablecoin RLUSD has received approval from the NYDFS. Expert Vincent Van Code highlights its advantages over competitors USDT and USDC due to strict compliance with financial regulations.
What Makes RLUSD Special
RLUSD has received approval from the New York Department of Financial Services, significantly enhancing its trustworthiness. Expert Vincent Van Code points out that RLUSD complies with four key US financial regulations: US GAAP, Basel III, FDIC, and Federal Reserve Rules. RLUSD is backed by onshore US assets like Treasury bonds, ensuring compliance with US GAAP and Basel III and operates under real-time audits. Compliance with FDIC and Federal Reserve rules ensures assets are held in regulated institutions, while compliance with the Dodd-Frank Act enhances transparency.
Why USDT and USDC Fall Short
Van Code argues that USDT fails to comply with audit requirements and its reserves include high-risk or illiquid assets. While USDC is more transparent than USDT, it cannot fully compete with RLUSD due to its partial offshore operations, making full US regulatory compliance impossible.
The Importance of RLUSD for the Market
RLUSD sets a new standard for stablecoins by meeting stringent US regulatory standards. It is the first stablecoin US banks can hold, paving the way for a more secure and transparent stablecoin future.
The NYDFS approval signals that RLUSD could play a crucial role in ensuring a secure and transparent future for stablecoins on the market.
