Ripple's RLUSD tops Bluechip's stablecoin ranking with A rating

Ripple’s RLUSD has achieved a significant milestone by being ranked as the number one stablecoin by Bluechip, a prominent stablecoin rating agency. The agency awarded RLUSD an 'A' rating, highlighting its robust compliance system and secure reserves custody with Bank of New York Mellon (BNY Mellon). This recognition underscores RLUSD's position as one of the safest stablecoins available in the market.

The ranking is based on several key factors, including the stablecoin's reserve custody and the segregation of its reserves from operational funds. RLUSD is backed by U.S. Treasury bills, government money market funds, and bank deposits, all of which are held by BNY Mellon. This segregation ensures that the reserves are not commingled with the stablecoin's operational funds, providing an additional layer of security and trust.

Bluechip’s stablecoin assessments place Gemini’s GUSD third and PayPal’s PYUSD fifth. Circle’s USDC earned a “B+” rating, in stark contrast to Tether’s USDT, which was notably assigned a “D.”

Ripple is expanding its regulatory footprint, applying for a license in Luxembourg for EU operations and a national trust bank charter in the U.S. Key partnerships with BNY Mellon for reserves custody and Amina Bank for direct support underscore growing institutional adoption, positioning RLUSD to bridge traditional finance and crypto markets. Ripple responded to the Bluechip rating announcement on July 18 on X: "Built for enterprise use cases, RLUSD delivers the security, compliance, and scale global businesses demand. We appreciate Bluechip’s A rating and recognition of RLUSD as the market’s most trusted stablecoin."

The news comes at a time when the stablecoin market is undergoing significant regulatory changes. The GENIUS Act, recently signed into law, includes provisions that require stablecoins to be backed 1:1 with the U.S. dollar or liquid assets such as Treasury Bills. The act also mandates monthly disclosures and annual audits, and prohibits interest or yield payments to holders of stablecoins. These regulatory developments are expected to further bolster RLUSD's market position, as it already complies with many of the act's requirements.

The recognition by Bluechip is a testament to Ripple's commitment to transparency and security in the stablecoin market. RLUSD's launch in December has seen it accumulate over $527 million in assets, and it is poised to continue gaining market share. The stablecoin's growth is likely to be further fueled by the regulatory clarity provided by the GENIUS Act, which is expected to attract more investors to the stablecoin market.

In summary, Ripple's RLUSD stablecoin has been ranked as the number one stablecoin by Bluechip, receiving an 'A' rating for its robust compliance system and secure reserves custody. This recognition comes at a time of significant regulatory changes in the stablecoin market, and RLUSD's compliance with the GENIUS Act is expected to further bolster its market position. The stablecoin's growth and recognition highlight Ripple's commitment to transparency and security in the stablecoin market.