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<p>Ripple Labs has officially received approval from the <a href="https://x.com/bgarlinghouse/status/1866571228464460215" target="_blank" rel="noreferrer noopener nofollow">New York Department of Financial Services</a> (NYDFS) to launch its stablecoin, RLUSD, ending months of speculation. Brad Garlinghouse, CEO of Ripple, confirmed the news yesterday, marking a significant achievement for the company. Crypto expert Vincent Van Code believes RLUSD stands out over competitors like USDT and USDC.</p>   
<p>Here's what you need to know about this important development.</p>   
<h2 class="wp-block-heading" id="h-what-makes-rlusd-special-nbsp">What Makes RLUSD Special?&nbsp;</h2>   
<p>Now that Ripple has the NYDFS’s stamp of approval, RLUSD has gained a key layer of credibility. This approval ensures the stablecoin meets strict regulatory standards, which will help build trust among investors and institutions.</p>   
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<p>Van Code points out that RLUSD is fully compliant with four major U.S. financial regulations: US GAAP, Basel III, FDIC and Federal Reserve Rules, and the Dodd-Frank Act. These regulations ensure that the stablecoin operates with the highest levels of transparency and accountability.</p>   
<p><strong>Backed by U.S. Assets</strong></p>   
<p>RLUSD is backed entirely by U.S. Treasury bonds and other onshore assets, meeting both US GAAP and Basel III requirements. This means the stablecoin has a clear and reliable value. Real-time audits will also be conducted to maintain transparency and ensure the coin’s value stays secure.</p>   
<h2 class="wp-block-heading" id="h-how-rlusd-complies-with-u-s-regulations">How RLUSD Complies with U.S. Regulations</h2>   
<p><strong>US GAAP</strong>: Ripple’s compliance with U.S. Generally Accepted Accounting Principles (GAAP) means RLUSD’s value is well-defined and can pass impairment tests. GAAP is the standard for financial reporting in the U.S.</p>   
<p><strong>Basel III</strong>: RLUSD’s compliance with Basel III ensures it meets important liquidity and risk guidelines. These rules were put in place after the 2007 financial crisis to improve risk management in banks, which makes RLUSD safer for users.</p>   
<p><strong>FDIC and Federal Reserve Rules</strong>: The stablecoin’s assets are stored in regulated financial institutions, making it compliant with FDIC and Federal Reserve guidelines. This guarantees the coin’s assets are securely held in regulated custody.</p>   
<p><strong>Dodd-Frank Act</strong>: By following the Dodd-Frank Wall Street Reform and Consumer Protection Act, RLUSD ensures it operates with transparency. This act was created after the 2007 financial crisis to protect consumers and make financial markets more transparent.</p>   
<h2 class="wp-block-heading" id="h-why-usdt-and-usdc-fall-short-nbsp">Why USDT and USDC Fall Short&nbsp;</h2>   
<p>Van Code is critical of USDT for not meeting regular audit requirements. He points out that USDT does not follow US GAAP or Basel III standards, and its reserves may include high-risk or illiquid assets. This makes it a less reliable option compared to RLUSD.</p>   
<p>Although Van Code acknowledges that USDC is more transparent than USDT, he argues it still doesn't measure up to RLUSD. Since USDC operates partially offshore, it can’t fully comply with U.S. regulations, which puts it at a disadvantage in the U.S. market.</p>   
<p><strong>As the first stablecoin approved for use by U.S. banks, RLUSD is paving the way for a more secure, transparent, and reliable future for stablecoins.</strong></p>

XRP News Now : Why Ripples RLUSD Out Shines USDT And USDC

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