USDC vs RLUSD, what is the difference?

USDC vs RLUSD compares two US dollar stablecoins that aim at the same goal, one token worth one dollar and redeemable for it. USDC is issued by Circle, which publishes USDC reserve reports going back to 2018. RLUSD, short for Ripple USD, is the newer coin, created by the payments company Ripple. They differ in issuer, supervisor, reserve set-up and the networks they run on.

Who issues RLUSD and who issues USDC?

RLUSD is issued by Standard Custody & Trust Company, a New York limited purpose trust company owned by Ripple and supervised by the New York State Department of Financial Services (NYDFS). Ripple's product page also cites approval from the Dubai Financial Services Authority. The basics are in what is RLUSD.

USDC is issued by regulated Circle affiliates. Circle's page names Circle Internet Financial, licensed in New York as a money transmitter and for virtual currency business, and a Bermuda entity licensed by the Bermuda Monetary Authority.

What is RLUSD backed by?

Ripple says RLUSD is backed one for one by US dollar cash, US Treasuries and government money market funds, held in segregated accounts, with 103% overcollateralization. BNY was chosen in July 2025 as primary custodian, and an independent accounting firm checks the reserves monthly.

NYDFS rules shape this. Its 2022 guidance requires reserves at least equal to tokens outstanding, limited to assets such as short-dated Treasury bills, government money market funds and bank deposits. Redemption at par is by default due within two business days.

Circle says most USDC reserves sit in the Circle Reserve Fund, a government money market fund managed by BlackRock, with the rest mostly as cash at large banks. A Big Four firm provides monthly assurance.

How does federal oversight differ?

Both companies now have national trust banks approved by the Office of the Comptroller of the Currency (OCC).

• Circle. Final approval came on July 10, 2026. Circle said the bank will first offer custody, and that managing the USDC reserve is a later goal.
• Ripple. Final approval came on October 26, 2026. Ripple said Ripple National Trust Bank will manage the segregated reserves behind RLUSD and act as collateral trustee for holders, while Standard Custody & Trust Company keeps issuing the token.

The wider US rulebook is the GENIUS Act, whose rules were still being finalized as of October 2026.

USDT vs USDC vs RLUSD, what else differs?

• Networks. Circle says USDC was native on 38 blockchains as of September 16, 2026. Ripple lists seven for RLUSD: the XRP Ledger, Ethereum, Base, Optimism, Ink, Unichain and the XRPL EVM Sidechain.
• Redemption. Circle Mint redeems directly only for institutions, so individuals use exchanges or apps. RLUSD redemption at par depends on jurisdiction. Tether's direct route for USDT needs at least $100,000.
• USDT. Tether's coin is not part of these trust bank approvals. How it compares with USDC is covered in USDT vs USDC.

None of these tokens is a bank deposit or covered by deposit insurance.