RLUSD Launches, Observer Reveals USD Ripple Stablecoin Advantage

JAKARTA - Developer XRP Ripple Labs has officially received approval from the New York Ministry of Financial Services (NYDFS) to launch their latest stablecoin, RLUSD. Ripple CEO Brad Garlinghouse stated that this step was a major breakthrough in creating a more secure and transparent stablecoin ecosystem.

With the presence of RLUSD, Ripple is optimistic that it can compete with big players such as USDT and USDC who currently dominate the stablecoin market. RLUSD is said to have its own advantages because it meets the four main standards of US financial regulations, namely US GAAP, Basel III, Federal Reserve rules, and the Dodd-Frank Law.

According to crypto expert Vincent Van Code, this compliance makes RLUSD a reliable and transparent stablecoin in the market. This is because stablecoins are fully supported by US domestic assets such as Treasury bonds, which ensure compliance with US GAAP and Basel III accounting standards.

In addition, RLUSD is supervised through a real-time audit to maintain user transparency and trust. This is a value more than other stablecoins whose security is often doubtful.

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Compliance with Basel III shows that RLUSD meets strict liquidity and risk management requirements. Assets supporting RLUSD are stored in regulated financial institutions, in accordance with Federal Reserve and FDIC guidelines. This provides additional guarantees for its users that their assets are managed safely.

On the other hand, the Dodd-Frank Law, which is designed to increase transparency in financial markets, is also obeyed by RLUSD. The law ensures that stablecoin operations are closely monitored to prevent abuse.

However, other stablecoins such as USDT and USDC are considered to still have shortcomings. Vincent Van Code highlighted that USDT is often criticized for its lack of routine audits and transparency in its asset reserves, which allegedly include high-risk assets. Meanwhile, USDC, although more transparent, has operations that are mostly overseas, making it difficult to fully comply with US regulations.

As the first recognized stablecoin and can be used by banks in the United States, RLUSD is expected to be able to attract more users to the digital asset market. Each 1 RLUSD will be equivalent to 1 US dollar because its value is pegged to the dollar. This step is believed to increase confidence in the crypto ecosystem, especially in the midst of increasing demand from large institutions.

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Tag: teknologi kripto stablecoin ripple