The post XRP News Now: Why Ripple’s RLUSD Outshines USDT and USDC? appeared first on Coinpedia Fintech News Earlier, there were rumours that the New York Department of Financial Services was seriously considering Ripple’s request to launch the company’s stablecoin, RLUSD. Marking an end to speculations, yesterday, Brad Garlinghouse, the CEO of Ripple Labs, confirmed that the company received approval from the NYDFS to launch RLUSD. Notably, crypto expert Vincent Van Code opines that Ripple’s stablecoin stands out over competitors such as USDT and USDC. Here is what you should know. What Makes RLUSD Special? Primarily, Ripple’s stablecoin now has the approval of the NYDFS, which is very important as it ensures high trustworthiness. US banks can hold #RLUSD on the XRPL/ETH ledger, and why USDC and USDT cannot. Here's an explanation of why RLUSD is so special and why it took years to get approved… READ ON Regulations Summary: U.S. GAAP/IFRS: Assets must have clear value, reliable measurement, and meet… — Vincent Van Code (@vincent_vancode) December 11, 2024 Additionally, Van Code points out that the stablecoin is fully compliant with four important US financial regulations: US GAAP, Basel III, FDIC and Federal Reserve Rules and the Dodd-Frank Act. The expert states that RLUSD is backed entirely by onshore US assets like Treasury bonds, ensuring its compliance with US GAAP and Basel III. He adds that the stablecoin operates under real-time audits. RLUSD’s compliance with the US GAAP ensures that the stablecoin has clear value and passes impairment testing. GAAP is a set of accounting rules used in financial reporting in the US. The compliance with Basel III indicates that the stablecoin meets liquidity and risk-weighting standards. Basel III is a set of procedures designed by the Basel Committee on Banking Supervision. The procedures, which mainly target improving the risk management of banks, were originally developed in response to the 2007 US financial crisis. Van Code also notes that the assets of the stablecoin are held in regulated financial institutions, ensuring its compliance with FDIC and Federal Reserve directives. The stablecoin’s compliance with FDIC and Federal Reserve rules means that RLUSD secures assets under regulated custody. Finally, the compliance with the Dodd-Frank Act suggests that the stablecoin enhances transparency with oversight for financial instruments. The Dodd-Frank Wall Street Reform and Consumer Protection Act is legislation passed by the US Congress in response to the 2007 financial crisis. The core principle of the act is that markets should be transparent. Why USDT and USDC Fall Short Pointing to USDT’s lackluster approach towards the requirement of regular audits, Van Code alleges the stablecoin has failed to comply with the basic audit requirements. Emphasising the inability of the stablecoin to meet the US GAAP and Basel III standards, the expert also claims that the reserves of the stablecoin include high-risk or illiquid assets. The expert thinks that USDC is much better than USDT in terms of transparency. However, he strongly denounces its ability to compete with RLUSD for being partly offshore, mentioning that offshore operations make full compliance with US regulations impossible. In conclusion, RLUSD has set a new benchmark for stablecoins by meeting stringent US regulatory standards. As the first stablecoin US banks can hold, RLUSD paves way for a more secure and transparent stablecoin future.
