Issuance & Redemption

Ripple RLUSD Mint/Burn

Bank-grade stablecoin — NYDFS-regulated, OCC conditional charter, BNY Mellon custody, zero-idle-supply model.

Vendors

Ripple · BNY Mellon · NYDFS

Compliance Center

NYDFS-grade KYB at Identity + demand-driven zero-idle-supply at Negotiation

I3 — RLUSD mint / redeem · Rails: issuance · Protocols: RLUSD Mint, Ripple Payments · Origin: United States — Federal
CTR (USD 10,000+)TRAVEL-RULE (USD 3,000+)ENHANCED-DUE-DILIGENCE (USD 50,000+)
I3 — RLUSD MINT / REDEEMYOU ARE HERE● Institutional K…POLICY⬣ Reserve Verific…POLICY▲ Dual-Chain MintCODE● Institutional R…POLICYIntentIdentityDiscoveryNegotiationTransportAuthorizationFacilitationFinalitySTEP 1STEP 2STEP 3STEP 4ETHEREUMVisual system: StablecoinAtlas.com · Steps mapped to 8 STP Stages
L5 APPLICATIONL4 ACCOUNTL3 EXECUTIONL2 CONSENSUSL1 NETWORKETHEREUM
L5 APPLICATIONWallet UX, consent, policy engineBank customer channel / issuer app
L4 ACCOUNTBalances, addresses, signing keysCore banking ledger / DDA

Step 1 · Institutional KYB OnboardingPolicy-EnforcedBlockchain-Native

Enhanced due diligence (EDD) for institutional banking relationships — NYDFS-grade KYB gating.

Institutional counterparty undergoes NYDFS-aligned KYB via Ripple's partner network. RLUSD is not retail-accessible; mint access is gated to approved institutions only. Identity (D1) and licensing (D8) gates are enforced at onboarding. Standard Custody & Trust Company (Ripple's trust subsidiary) operates under NYDFS BitLicense and a limited purpose trust charter — among the highest US regulatory bars for stablecoin issuance.

Active Compliance Checkpoints
C2 OFAC SDN/SSI list screening — OFAC 50 USC § 1702 (United States — Federal) · GENIUS §6
⚠ ENHANCED-DUE-DILIGENCE triggered at USD 50,000 — 31 CFR § 1010.312 — Enhanced Due Diligence (United States — Federal)
Counterparty
Ripple + Standard Custody & Trust Co. (NYDFS-regulated)
Latency
Hours to days · institutional EDD
Finality
KYB approval gates mint access
Vendors
MetaMask / Fireblocks · EOA / ERC-4337
L5 APPLICATIONL4 ACCOUNTL3 EXECUTIONL2 CONSENSUSL1 NETWORKETHEREUM
L3 EXECUTIONSmart contracts, swap / bridge logicClearing & matching engine
◆ Enforcement Line — code-enforced below, policy-enforced above

Step 2 · Reserve Verification & AttestationPolicy-EnforcedBlockchain-Native

Attestation by an independent accounting firm — prudential reserve confirmation before issuance.

RLUSD reserves are 100% cash and cash equivalents (T-bills and bank deposits), custodied at BNY Mellon. Zero-idle-supply model: every token minted maps to a specific deposit from an approved institutional counterparty. Monthly independent attestation confirms the 1:1 backing. This is the prudential checkpoint — D8 (licensing) and D9 (capital/reserve requirements) fire. NYDFS oversight is continuous.

Active Compliance Checkpoints
C2 OFAC SDN/SSI list screening — OFAC 50 USC § 1702 (United States — Federal) · GENIUS §6
Counterparty
BNY Mellon (custodian) + independent accounting firm
Latency
~1s · attestation oracle verification
Finality
Reserve confirmation — mint authorized
Vendors
Uniswap v4 · Chainalysis OFAC Oracle · Circle CCTP v2
L5 APPLICATIONL4 ACCOUNTL3 EXECUTIONL2 CONSENSUSL1 NETWORKETHEREUM
L4 ACCOUNTBalances, addresses, signing keysCore banking ledger / DDA
L3 EXECUTIONSmart contracts, swap / bridge logicClearing & matching engine
L2 CONSENSUSValidator ordering, block productionRTGS settlement engine
◆ Enforcement Line — code-enforced below, policy-enforced above

Step 3 · Dual-Chain Mint (Ethereum / XRP Ledger)Code-EnforcedBlockchain-Native

Fiat-to-blockchain boundary crossing — reserve-backed value transitions onto chain per institutional preference.

Minted on Ethereum (ERC-20) or XRP Ledger (issued currency) per counterparty preference. Demand-driven — no speculative pre-minting. L4 Account (institutional balance), L3 Execution (mint contract/ledger operation), and L2 Consensus (block/ledger inclusion) light up. Money transmission licensing (D8) and consumer protection (D14) domains active. Ripple's dual-chain architecture reflects institutional optionality: traditional payment corridors prefer XRP Ledger; DeFi integrations prefer Ethereum.

Active Compliance Checkpoints
C2 OFAC SDN/SSI list screening — OFAC 50 USC § 1702 (United States — Federal) · GENIUS §6
C7 Notabene IVMS101 or Chainalysis Connect — FATF Rec. 16; 31 CFR 1010.410(f) (United States — Federal) · GENIUS §7, §8
⚠ TRAVEL-RULE triggered at USD 3,000 — 31 CFR § 1010.410(f) — Funds Transfer Recordkeeping (United States — Federal)
Counterparty
Standard Custody & Trust Co. (RLUSD mint contract)
Latency
~12s Ethereum / ~3-4s XRP Ledger
Finality
Final on Ethereum block / XRP Ledger consensus
Vendors
Ethereum PoS Validators · Uniswap v4 · Chainalysis OFAC Oracle · Circle CCTP v2 · EOA / ERC-4337
L5 APPLICATIONL4 ACCOUNTL3 EXECUTIONL2 CONSENSUSL1 NETWORKETHEREUM
L5 APPLICATIONWallet UX, consent, policy engineBank customer channel / issuer app
L4 ACCOUNTBalances, addresses, signing keysCore banking ledger / DDA

Step 4 · Institutional RLUSD WalletPolicy-EnforcedBlockchain-Native

Updated institutional digital-asset balance — RLUSD received and immediately available for settlement.

Newly minted RLUSD arrives in the institutional wallet on the chosen chain (Ethereum or XRP Ledger). L4 Account and L5 Application lit. Recordkeeping (D11) and tax reporting (D12) obligations fire. The counterparty now holds RLUSD — a dollar-denominated stablecoin with NYDFS regulatory clarity, transparent reserves, and monthly independent attestation. Designed for GENIUS Act compliance.

⚠ CTR triggered at USD 10,000 — 31 CFR § 1010.311 — Currency Transaction Report (United States — Federal)
Counterparty
Institutional custodial wallet (Ethereum / XRP Ledger)
Latency
Instant on mint confirmation
Finality
Final · RLUSD available for settlement
Vendors
MetaMask / Fireblocks · EOA / ERC-4337

Resolved 4 steps across 1 chain(s). 3 threshold(s) triggered. Frameworks: Bank Secrecy Act, GENIUS Act, OFAC Sanctions Program, FATF Recommendation 16 (Travel Rule), Common Reporting Standard / FATCA.