Ripple’s RLUSD Surpasses Competitors in Stablecoin Market

Ripple’s Chief Executive Officer, Brad Garlinghouse, has proudly announced a significant milestone for Ripple’s RLUSD stablecoin. Recognized as the most regulated stablecoin, RLUSD now stands ahead of industry giants such as Tether’s USDT and Circle’s USDC.

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Ripple’s RLUSD Achieves Top Spot in Stablecoin Rankings

In a recent announcement, Brad Garlinghouse emphasized the impact of the GENIUS Act that was signed last week, which has contributed to RLUSD being recognized as the leading stablecoin. This accolade comes from Bluechip, a prominent stablecoin rating agency, which ranked RLUSD at the top, surpassing both USDT and USDC.

Bluechip’s Endorsement of RLUSD

Bluechip has commenced its coverage of Ripple’s stablecoin with an initial rating of A, reflecting its assessment that RLUSD is among the safest stablecoins available today. The rating is attributed to RLUSD’s backing by U.S. Treasury bills, money market funds, and bank deposits, which are known for their low credit and duration risks.

Further enhancing its credibility, RLUSD is regulated by the New York Department of Financial Services (NYDFS), ensuring adherence to stringent regulatory standards. The reserves for RLUSD are securely held by the Bank of New York Mellon, the largest custodian of financial securities globally, further solidifying the stablecoin’s reliability.

Factors Contributing to RLUSD’s High Rating

Bluechip’s A rating for RLUSD is based on three crucial factors: stability, management, and governance. The stablecoin received scores of 0.91 for stability, 0.84 for management, and 0.86 for governance. These scores signify that RLUSD is not only stable but also managed and governed with minimal risk.

Comparative Rankings: USDT and USDC

While Ripple’s RLUSD leads the rankings, Circle’s USDC holds the eighth position with a B+ ranking, despite being the second-largest stablecoin by market capitalization. Both Circle and Ripple are in pursuit of national banking licenses, which would enhance the regulatory standing of their respective stablecoins by bringing them under the oversight of the Office of the Comptroller of the Currency (OCC).

In contrast, Tether’s USDT is positioned at the 16th spot with a D rating, indicating concerns over its regulatory compliance. Issued outside the United States, USDT has faced criticism for its lack of regulatory oversight. However, Tether has announced plans to introduce a compliant stablecoin for the U.S. market in accordance with the GENIUS Act.

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