A Guide to RLUSD: A New Stablecoin for BitMEX Traders
RLUSD (Ripple USD) is a new U.S. dollar–pegged stablecoin introduced by Ripple, designed to combine the reliability of the USD with blockchain efficiency in a trusted, liquid, and compliant manner.
In this piece, we’ll break down everything RLUSD, including;
- What RLUSD is,
- How to buy and use it on BitMEX,
- How it compares to stablecoins like USDT and USDC,
- Why upcoming U.S. regulations could be bullish for RLUSD’s future.
Let’s dive in.
What Is RLUSD (Ripple USD)?
RLUSD is a USD-backed stablecoin issued by Standard Custody & Trust Company, LLC, a wholly owned Ripple subsidiary. Each RLUSD token is fully backed 1:1 by U.S. dollars or cash equivalents held in reserve. In December 2024, RLUSD received approval from the New York Department of Financial Services (NYDFS) to launch on both the XRP Ledger (XRPL) and Ethereum blockchains. This dual-network support means RLUSD exists as a native asset on XRPL and as an ERC-20 token on Ethereum, giving it flexibility to serve different ecosystems.
Intended Use Case
RLUSD is purpose-built for cross-border payments and enterprise use. Ripple leverages RLUSD in its Ripple Payments network for institutions needing fast, low-cost global transfers. By providing a stable, on-chain dollar, RLUSD aims to facilitate instant settlement in international transactions.
It’s essentially “digital cash” on the blockchain that’s meant to bridge traditional finance with crypto for remittances, treasury operations, and potentially DeFi use cases. It’s important to note here that RLUSD is not a replacement for XRP – rather, it intends to complement the XRP Ledger ecosystem by providing diverse options. XRP remains the native asset for transaction fees and the bridging of currencies on XRPL.
Regulatory Compliance & Trust
A key differentiator of RLUSD is its strong compliance footing. The issuer holds a New York Trust Charter, meaning RLUSD operates under NYDFS oversight with robust audits and consumer protection. Ripple publishes monthly reserve attestations by independent accountants to prove that each RLUSD is fully collateralised. This transparent, regulated framework is designed to instill confidence for institutions and users transacting with RLUSD.
With Ripple being an industry player for over a decade, it leverages its experience and global licences to ensure that RLUSD users can “transact with confidence” in a compliant manner.
How to Buy and Use RLUSD on BitMEX
Traders interested in RLUSD have multiple avenues to acquire and use this stablecoin.
- Deposit RLUSD on BitMEX: If you already hold RLUSD, you can deposit it directly into your BitMEX wallet. BitMEX supports RLUSD deposits via Ethereum (ERC-20) or XRP Ledger (XRPL) networks. Once deposited, you can hold RLUSD securely in your BitMEX account or use it for trading and margin.
- Buy/Trade RLUSD on BitMEX Spot: BitMEX provides an RLUSD/USDT spot pair, allowing users to trade between Tether (USDT) and RLUSD. This means you can convert other stablecoins or crypto to RLUSD on BitMEX by placing orders on the RLUSD_USDT order book. For example, if you have USDT on BitMEX, you can trade it for RLUSD at a 1:1 rate (subject to market liquidity) to start using RLUSD.
Using RLUSD on BitMEX
The addition of RLUSD on BitMEX means traders can keep some of their account balance in a USD-pegged asset (an alternative to holding volatile crypto as collateral).
What’s more, BitMEX also enabled Multi-Asset Margining support for RLUSD. This is significant: it makes BitMEX the first exchange to allow RLUSD as margin for derivatives trading.
In practice, this means you can use RLUSD to margin any futures or perpetual swap on BitMEX – your RLUSD balance can secure your positions just like Bitcoin or USDT collateral. For traders, this offers more flexibility in risk management. You might choose to keep profits in RLUSD to avoid crypto volatility, or post RLUSD as margin if you prefer the stablecoin over others.
The addition of RLUSD as well as XRP to BitMEX’s array of margin assets underscores our confidence in the XRP Ledger ecosystem.
P.S. Deposit, Buy, Trade, or use RLUSD as Margin on BitMEX to win your share of 15,000 RLUSD. More details here: https://www.bitmex.com/ripple-effect
RLUSD vs USDT vs USDC: How It Stacks Up
RLUSD enters a stablecoin arena dominated by Tether (USDT) and USD Coin (USDC). All three are pegged 1:1 to the US dollar, but there are notable differences in their backing, governance, issuer reputation, and usage.
Below is a summary of key comparisons between the three stablecoin options.
Feature | RLUSD (Ripple USD) | USDT (Tether) | USDC (USD Coin) |
Issuer & Governance | Issued by Standard Custody & Trust Co., a Ripple Labs subsidiary. Regulated under a NYDFS Trust Charter (strict oversight). Ripple Labs (developer) has a decade-long track record in blockchain. | Issued by Tether Limited, an offshore company with limited regulatory oversight (not formally regulated in the U.S.). Tether’s governance has faced past scrutiny and legal fines over transparency of reserves. | Issued by Circle (via the Centre consortium with Coinbase). Operates under U.S. state licenses and seeks federal oversight; known for strong transparency and compliance (monthly audited reserve attestations). Circle has a solid reputation in fintech, albeit subject to U.S. regulatory frameworks. |
Collateral Backing | 100% cash and cash equivalents (USD deposits, T-bills, etc.) held in segregated reserves. Monthly attestations ensure each RLUSD is fully redeemable for $1. | Claims full backing with a mix of assets. Holdings include cash, cash equivalents, short-term deposits, and historically other investments (e.g. commercial paper, loans, even metals or crypto. Transparency improved recently with quarterly reports, but details of reserves have been controversial in the past. | 100% backed by cash and short-term U.S. Treasuries, with reserves held at regulated financial institutions. Provides monthly third-party attestations (formerly by Grant Thornton) to verify 1:1 backing, instilling confidence in 1:1 redeemability. |
Supported Networks | Launched on XRP Ledger and Ethereum, with plans for deeper integration into Ripple’s network and potentially others. (Currently primarily on XRPL & ERC-20 format on ETH.) | Issued on multiple blockchains: originally on Bitcoin’s Omni layer, now on Ethereum, Tron, Solana, Algorand, Polygon, and more. | Issued on multiple chains: started on Ethereum, now also on Algorand, Solana, Stellar, Avalanche, Polygon, Arbitrum, and others. |
Launch Year & Scalability | Launched in 2024. As a newcomer, its market cap is modest (~$300 million as of April 2025). Growing fast due to institutional adoption, but still smaller relative to dominant stablecoins. | Launched in 2014, making it the oldest USD stablecoin. It is the largest by market cap (on the order of tens of billions USD; dominant in trading). By late 2024, USDT’s supply had grown past $130+ billion amid surging demand. | Launched in 2018. It became the second-largest stablecoin, peaking around ~$50 billion market cap, though fluctuating with demand. USDC’s supply saw rapid growth in 2021–22, then a dip in 2023, stabilising in the tens-of-billions range. It remains a key stablecoin but ceded the #1 spot to USDT. |
Primary Use & Adoption | Enterprise payments and settlements. Targeted for banks, fintechs, and businesses for cross-border transfers, on/off-ramps, and eventually DeFi liquidity. Adoption is being driven by partnerships (e.g. aid programs in Kenya) and exchange integrations. BitMEX is the first to use RLUSD as margin collateral, highlighting a trading use-case as well. | Crypto trading and general-purpose stablecoin. USDT is the quote currency on many exchanges and trading pairs, especially in Asia and offshore markets. It’s widely used where liquidity is paramount. USDT is also used in DeFi, though its issuer’s opaque nature leads some platforms to prefer alternatives. | Regulated trading, DeFi, and payments. USDC is popular in DeFi due to its transparency – often the stablecoin of choice for lending protocols, DEX pools, and as collateral. It’s also favoured by institutions and U.S.-based crypto firms that require a compliant stablecoin. However, USDC has slightly less trading volume globally than USDT, partly due to stricter oversight and blacklisting capabilities that come with compliance. |
Regulation’s Role in Boosting RLUSD Growth
On the regulatory front, the Senate has introduced a bipartisan stablecoin bill designed to create a regulatory framework for stablecoin issuance and supervision in the U.S. The GENIUS Act aims to establish federal standards for stablecoin issuers, and its progress is an important macro development for all dollar-pegged coins – including RLUSD. Here’s a brief on GENIUS Act and its bullish implications:
What is the GENIUS Act? It’s a comprehensive stablecoin regulatory bill that recently cleared hurdles in the U.S. Senate. The act’s provisions focus on ensuring stablecoin safety and oversight. Key rules in the GENIUS Act would:
- Mandate 1:1 Reserves: Stablecoin issuers must back tokens fully with safe, liquid assets (like cash or U.S. Treasury bills). This prevents fractional reserves and protects users’ redemptions.
- Enforce AML/CFT Compliance: Issuers would need to implement strict anti-money laundering and counter-terrorism financing measures, bringing stablecoins in line with traditional financial standards.
- Prioritise Consumer Protection: If an issuer goes insolvent, redemption rights of stablecoin holders get priority – so users are first in line to be repaid from reserves.
- Federal Oversight: Non-bank stablecoin issuers (like fintech companies) would come under federal regulators (potentially the Fed or another agency). This means uniform rules across states and stronger supervision beyond patchwork state licenses.
RLUSD already aligns well with the proposed requirements: it’s fully reserved with cash equivalents, operated by a regulated trust company, and emphasizes transparency. Ripple’s SVP of Custody, Jack McDonald, noted that many next-gen stablecoin uses “will need regulatory clarity to succeed in the U.S.” The GENIUS Act would provide that clarity.
For RLUSD, a regulated framework could unlock new avenues:
- Institutional Adoption: Large financial institutions and fintechs have been cautious with stablecoins in the absence of clear law. With the GENIUS Act, they could confidently integrate stablecoins for settlements.. RLUSD, being strictly compliant, would be an obvious contender for banks or enterprises seeking a USD token that passes muster with regulators. This could vastly expand RLUSD’s user base (beyond crypto-natives to fintech apps, payment networks, etc.).
- Broader Market Trust: Stablecoins as an industry could see a trillions of dollars influx once regulated, as per crypto industry observers. If the GENIUS Act passes, it effectively green-lights dollar stablecoins as legitimate financial instruments. Increased trust can lead to more demand, tighter $1 parity, and more uses (including being held as a dollar substitute in various applications).
In short, the GENIUS Act is poised to reshape the stablecoin landscape in favour of fully backed, transparent players. RLUSD stands at the forefront of this category, much like USDC, and is positioned to thrive under the forthcoming rules. For BitMEX traders and the crypto community, this is a positive sign – it means the stablecoins you rely on are becoming safer and more widely accepted. A compliant RLUSD could see broader exchange support, deeper liquidity, and integration into traditional finance, all of which reinforce its value staying solid at $1.00.
The Bottom Line
RLUSD is an exciting new entrant in the stablecoin arena, bringing Ripple’s enterprise-grade approach to a USD-pegged asset. Issued under stringent oversight and aimed at real-world utility, it offers a fresh alternative for traders and institutions alike.
For BitMEX users, RLUSD opens the door to holding and using a regulated stablecoin natively on the platform – either through for spot trading or using as margin collateral across our products.
As the stablecoin ecosystem evolves and potential U.S. regulations like the GENIUS Act come into play, RLUSD finds itself in a strong position. It aligns with the direction of regulatory travel – towards fully backed, transparent stablecoins that can seamlessly integrate with traditional finance. This alignment could accelerate RLUSD’s adoption and perhaps even shape the practices of other stablecoin issuers.
If Ripple’s bet pays off, RLUSD might soon feature in more trading pairs, DeFi protocols, and fintech applications worldwide. In the fast-moving world of crypto, having another reliable stablecoin – especially one championed by a company with Ripple’s clout – is a net positive. RLUSD’s journey is just beginning, and BitMEX traders now have a front-row seat to how this “digital dollar” can be leveraged in the market.
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