Recently, Ripple made headlines as its RLUSD stablecoin has been recognized as a leader in the regulatory landscape. This new acknowledgment places RLUSD ahead of well-known competitors like Tether’s USDT and Circle’s USDC.
Ripple’s RLUSD Takes the Lead in Stablecoin Rankings
In a recent tweet, Ripple’s CEO, Brad Garlinghouse, celebrated the company’s achievement amidst favorable regulatory developments following the signing of the GENIUS Act. This pivotal moment positioned RLUSD as the most reliable stablecoin according to Bluechip, a notable stablecoin rating agency. This ranking signifies a major milestone for Ripple in the crypto space.
Bluechip’s recent assessment indicated that RLUSD’s inaugural rating is an impressive A. The agency emphasized that RLUSD reflects a high safety standard, underlining its reputation in the market as one of the most robust stablecoins available today.
Several key factors contributed to the A rating, including the backing of RLUSD by secure assets such as U.S. Treasury bills and money market funds. Such assets minimize both credit and duration risks, ensuring a stable value for holders. Additionally, RLUSD operates under the regulatory umbrella of the New York Department of Financial Services (NYDFS), which enforces strict compliance standards.
Moreover, RLUSD’s reserves are safeguarded by the Bank of New York Mellon, a globally recognized custodian known for its financial security. Bluechip highlighted that these reserves are separated into distinct accounts solely for the benefit of token holders, ensuring protection even in hypothetical adverse scenarios involving Ripple.
Bluechip’s assessment also rated Ripple’s stablecoin across three critical areas—stability, management, and governance—achieving scores of 0.91, 0.84, and 0.86 respectively. Such evaluations indicate that the stablecoin is not only stable but also showcases exemplary governance and management standards, representing a very low risk to investors.
Comparative Analysis: USDT and USDC Rankings
In contrast, Circle’s USDC falls behind at the eighth position with a B+ rating, despite being the second largest stablecoin by market capitalization. Both Circle and Ripple are currently pursuing applications for national banking licenses which would allow them to securely manage the reserves for their stablecoins under federal regulations.
Securing national banking licenses would enhance the regulatory framework surrounding both RLUSD and USDC, shifting oversight to the Office of the Comptroller of the Currency (OCC), increasing confidence among investors. On the other hand, Tether’s USDT languishes at the 16th position on Bluechip’s rankings with a D rating, which raises concerns about its regulatory integrity.
USDT has faced criticism regarding its regulatory approach and transparency, especially since it is managed outside of the United States. Recently, however, Tether has announced intentions to develop a compliant stablecoin specifically for the U.S. market, aligning with the provisions set forth by the GENIUS Act.
