AMINA Bank has dispelled some myths surrounding Ripple’s stablecoin, RLUSD. On a recent thread on X, the Swiss digital asset bank dismantled some common misconceptions and provided valuable insights into the purpose, backing, and regulatory position of the stablecoin.
The bank clarified that stablecoin is built with long-term reliability in mind: stable by design, fully regulated, and ready for real-world use. It also added that institutions and users can access LUSD for custody and trading through AMINA Bank.
RLUSD Isn’t Replacing XRP
One of the biggest misunderstandings is that RLUSD will replace XRP on the XRP Ledger. AMINA Bank clarified that this isn’t true. RLUSD is a stablecoin that runs on the XRP Ledger, but XRP remains essential. It’s still needed to pay transaction fees and power the network. In short, users might use RLUSD for transactions, but XRP “is the engine behind every move.”
RLUSD Is Already Regulated
Another myth suggests that RLUSD is still waiting for regulatory approval. However, AMINA confirmed that RLUSD has already been greenlit by two of the most respected regulators: New York’s Department of Financial Services (NYDFS) and Dubai’s Virtual Assets Regulatory Authority (VARA). This means RLUSD can already be used and built into apps and financial services today.
Fully Backed by U.S. Assets
There have also been concerns that volatile crypto assets might back RLUSD. AMINA put those fears to rest, stating that each RLUSD is backed 1:1 by U.S. dollars or U.S. Treasury bills, which are held in secure, segregated accounts.
Designed for the Future
While many assume RLUSD is “like every other stablecoin,” AMINA explained that it’s designed with the future in mind. On Ethereum, RLUSD utilizes a modern smart contract standard, UUPS (Universal Upgradeable Proxy Standard), which enables upgrades over time without altering its address. This keeps it secure and adaptable as things progress.
Not Just for DeFi, Built for Business
AMINA also mentions one last myth that “RLUSD is only for crypto trading or DeFi.” But it’s designed for real-world commercial applications, ranging from cross-border transactions to corporate treasury management and payouts.
Also Read: Ripple Taps $53 Tln BNY Mellon as Primary Custodian of RLUSD
