- The RLUSD received a top rating in its stability, management, and governance according to Bluechip.org.
- Ripple Labs partnered with BNY Mellon to facilitate primary custody of Ripple USD reserves.
- The mainstream adoption of RLUSD has a ripple effect on XRP’s bullish outlook.
Ripple USD (RLUSD), the U.S. dollar-backed stablecoin from Ripple, has received the highest possible rating from the Bluechip organization. Last Friday, Bluechip initiated its coverage of RLUSD with an initial “A” rating, signifying “very low market risk.”
According to Ripple Labs CEO Brad Garlinghouse, the Bluechip rating is a clear indication of the high trust the public has in the new stablecoin. Bluechip also identified RLUSD with a stability score of 0.91, a management score of 0.84, and a governance score of 0.86—all within the “very low risk” category.
Reasons Why Ripple USD (RLUSD) Achieved Top Ratings
A key reason for the top rating is that Ripple Labs has, over the years, developed a reliable cross-border payment ecosystem. The company has partnered with dozens of traditional financial institutions to facilitate seamless payments. For RLUSD specifically, Ripple announced a strategic partnership with OpenPayd to handle the direct minting and burning of the stablecoin.
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The stablecoin also received its top rating due to the partnership between Ripple and The Bank of New York Mellon (BNY Mellon). Earlier this month, the two firms announced that BNY Mellon, one of the world’s largest custodian banks, will facilitate the secure custody of RLUSD’s dollar reserves.
RLUSD’s Strong Regulatory Compliance
RLUSD was also highly rated due to its notable regulatory compliance in several jurisdictions. The stablecoin is regulated under a New York Department of Financial Services (NYDFS) Trust Company Charter, one of the highest standards in the U.S.
The recent passage of the GENIUS Act into law in the United States has helped RLUSD achieve high regulatory clarity. Furthermore, the GENIUS Act was implemented to help the U.S. dollar remain the global reserve currency through the stablecoin market.
How RLUSD’s adoption directly benefits the XRP token
The rising adoption of RLUSD has a direct correlation with the bullish outlook for XRP, the native coin for the XRPL network. According to on-chain data from Coingecko, the RLUSD had a daily average traded volume of about $763 million and a market cap of around $557 million, indicating high market demand.
Related: Ripple CEO Praises Trump as “Most Crypto-Forward” President After GENIUS Act Signing
The notable high demand for RLUSD helps in the on-chain burning of XRP, which in turn reduces its circulating supply. With the rising demand for XRP, whereby whales bought over 280 million coins in the past 10 days, the altcoin is well-positioned to enter its parabolic rally soon.
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