Pundit Explains Why Ripple’s RLUSD Is Unlike Other Stablecoins, What’s The Difference?
RLUSD for Ripple it stands out from most stablecoins in the way it is designed to work within financial markets. Rather than focusing on broad commercial use, its early design and integration points to a role focused on trading infrastructure, collaborative structures, and regulated transaction flows. That difference becomes clear with the latest updates shared on X by Ripple CEO Jack McDonald and more extended by market analyst Richard, who examined how RLUSD works as a currency instrument within real market systems.
Why RLUSD Is Different From Standard Stablecoins
Many stablecoins focus on increasing the flow of funds and improving investment in the market, usually with retail users as the main audience. RLUSD follows a different structure. As McDonald pointed out, the best of it institutional readiness. An important part of this is independent monthly evidence, which includes third-party verification that RLUSD is fully committed to supporting broadcast offerings.
For institutions, this is important. Banks, brokers, and trading firms operate under strict compliance and risk regulations. Without regular, independent verification, a stablecoin cannot be treated as a usable currency on the balance sheet. Evidence allows RLUSD to be held, transferred, and settled without causing regulatory or accounting concerns.
This foundation explains why RLUSD came to be accepted as the primary security LMAX global trading market. Collateral is what traders send to open and maintain positions. To qualify, the asset must hold value reliably throughout the trading day, move quickly between margin and payment accounts, and remain reliable during volatile conditions. It should also support rehypothecation, meaning it can be reused across transactions. RLUSD meets these standards.
The same concept applies to financial matters. McDonald noted that real-world asset deposits on Aave increased by nearly $400 million in the most recent quarter, RLUSD is driving most of that growth. In this context, RLUSD acts as part of a stable currency that allows tokenized assets to function effectively. Institutions need a unit of account that administrators and internal systems can recognize, and RLUSD is designed to fulfill that role.
What RLUSD Velocity and Market Access Reveals
RLUSD’s availability on Binance, Ethereum, and OSL trading pairs show a focus on broad reach rather than chasing volume. The goal is to ensure that RLUSD can appear wherever money already exists. The upcoming support of XRPL on Binance increases that flexibility.
Richard also pointed to the high processing speed of RLUSD, which means that the same units are constantly moving rather than sitting idle. Speed is the first sign of real use, especially to solve and arresting motion. Market capitalization usually follows when these operations scale.
This framing clarifies the true purpose of RLUSD. It is intended to replace inefficient structures such as pre-funded accounts, collateral, and cross-border balances. In this model, XRP acts as a bridge assettracking strategy, and receiving collateral comes before visibility.
Basically, the purpose of RLUSD is to quietly improve the way money moves and stays in all markets. That focus on performance is what makes it so different.
The featured image was created with Dall.E, a chart from Tradingview.com
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