Ripple RLUSD Mint/Burn — Issuance & Redemption

L5 APPLICATIONCUSTODIAN

L4 ACCOUNTCUSTODIAN

Step 1 · Institutional KYB OnboardingPolicy-Enforced

"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.

Counterparty: Ripple + Standard Custody & Trust Co. (NYDFS-regulated)
Latency: Hours to days · institutional EDD
Finality: KYB approval gates mint access
Vendors: MetaMask · MetaMask Institutional (ConsenSys-operated; institutional custody/MPC integrations) · Fireblocks · Safe (Gnosis Safe — multisig + module framework) · EOA (secp256k1 externally-owned accounts) + ERC-4337 account abstraction (EntryPoint singleton + UserOperation mempool — paymaster and aggregator extensions) · Securitize LLC (SEC-registered transfer agent; runs Reg D 506(c)(2)(ii) accredited-investor verification workflow) — off-chain compliance function paired with on-chain DS Protocol enforcement · EigenLayer (restaking primitive — slashing-conditional re-pledge of staked ETH and LSTs to Actively Validated Services; compliance-relevant for AVSs that supply oracle / fast-finality / DA security to downstream protocols) · Securitize Markets ATS (SEC-registered ATS) · INX Securities ATS · BlackRock BUIDL · Franklin BENJI · Hashnote USYC · Ondo OUSG · Apollo ACRED (Ethereum mainnet deployments; issuer profiles carry SEC-registered / NYDFS limited-purpose trust / Reg D 506(c) postures detailed in the respective compliance frameworks)
Chain: Ethereum (Ethereum Foundation (protocol research + core-dev grants; protocol itself is permissionless and operated by the validator set))

L3 EXECUTIONReserve verification

Step 2 · Reserve Verification & AttestationPolicy-EnforcedINGESTDETECTALERT

"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.

Counterparty: BNY Mellon (custodian) + independent accounting firm
Latency: ~1s · attestation oracle verification
Finality: Reserve confirmation — mint authorized
Vendors: Uniswap v4 (extensible AMM — concentrated liquidity + custom-logic extension framework) · Curve · Balancer · Chainalysis OFAC Oracle (on-chain SDN-list enforcement primitive · code-enforced at the contract layer for opt-in callers) · Circle CCTP v2 (canonical USDC burn-and-mint cross-chain transport) · Wormhole · LayerZero · Across (intent-based settlement) · Securitize DS Protocol (on-chain transfer-restriction smart-contract framework enforcing eligible-investor whitelisting) · ERC-3643 / T-REX (industry-standard permissioned-token framework — Tokeny-developed, used by issuers outside the Securitize stack)
Chain: Ethereum (Ethereum Foundation (protocol research + core-dev grants; protocol itself is permissionless and operated by the validator set))

L4 ACCOUNTON-RAMP

L3 EXECUTIONON-RAMP

L2 CONSENSUSON-RAMP

◆ Enforcement Line — code-enforced at this layer

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

"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.

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 Proof-of-Stake (Beacon Chain — Casper FFG finality + LMD-GHOST fork choice) — permissionless 32-ETH stake threshold; effective validator economics concentrated via Lido / Coinbase / Binance / Kraken / Figment staking pools · MEV-Boost relays (Proposer-Builder Separation — out-of-protocol; OFAC-compliant relays Flashbots / BloXroute Regulated have periodically dominated relay share) · Uniswap v4 (extensible AMM — concentrated liquidity + custom-logic extension framework) · Curve · Balancer · Chainalysis OFAC Oracle (on-chain SDN-list enforcement primitive · code-enforced at the contract layer for opt-in callers) · Circle CCTP v2 (canonical USDC burn-and-mint cross-chain transport) · Wormhole · LayerZero · Across (intent-based settlement) · Securitize DS Protocol (on-chain transfer-restriction smart-contract framework enforcing eligible-investor whitelisting) · ERC-3643 / T-REX (industry-standard permissioned-token framework — Tokeny-developed, used by issuers outside the Securitize stack) · EOA (secp256k1 externally-owned accounts) + ERC-4337 account abstraction (EntryPoint singleton + UserOperation mempool — paymaster and aggregator extensions) · Securitize LLC (SEC-registered transfer agent; runs Reg D 506(c)(2)(ii) accredited-investor verification workflow) — off-chain compliance function paired with on-chain DS Protocol enforcement · EigenLayer (restaking primitive — slashing-conditional re-pledge of staked ETH and LSTs to Actively Validated Services; compliance-relevant for AVSs that supply oracle / fast-finality / DA security to downstream protocols)
Chain: Ethereum (Ethereum Foundation (protocol research + core-dev grants; protocol itself is permissionless and operated by the validator set))

L5 APPLICATIONWALLET

L4 ACCOUNTWALLET

Step 4 · Institutional RLUSD WalletPolicy-Enforced

"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.

Counterparty: Institutional custodial wallet (Ethereum / XRP Ledger)
Latency: Instant on mint confirmation
Finality: Final · RLUSD available for settlement
Vendors: MetaMask · MetaMask Institutional (ConsenSys-operated; institutional custody/MPC integrations) · Fireblocks · Safe (Gnosis Safe — multisig + module framework) · EOA (secp256k1 externally-owned accounts) + ERC-4337 account abstraction (EntryPoint singleton + UserOperation mempool — paymaster and aggregator extensions) · Securitize LLC (SEC-registered transfer agent; runs Reg D 506(c)(2)(ii) accredited-investor verification workflow) — off-chain compliance function paired with on-chain DS Protocol enforcement · EigenLayer (restaking primitive — slashing-conditional re-pledge of staked ETH and LSTs to Actively Validated Services; compliance-relevant for AVSs that supply oracle / fast-finality / DA security to downstream protocols) · Securitize Markets ATS (SEC-registered ATS) · INX Securities ATS · BlackRock BUIDL · Franklin BENJI · Hashnote USYC · Ondo OUSG · Apollo ACRED (Ethereum mainnet deployments; issuer profiles carry SEC-registered / NYDFS limited-purpose trust / Reg D 506(c) postures detailed in the respective compliance frameworks)
Chain: Ethereum (Ethereum Foundation (protocol research + core-dev grants; protocol itself is permissionless and operated by the validator set))

Step 1 · Institutional KYB OnboardingPolicy-Enforced

Step 2 · Reserve Verification & AttestationPolicy-EnforcedINGESTIDETECTDALERTA

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

Step 4 · Institutional RLUSD WalletPolicy-Enforced

Other Issuance & Redemption Paths

Step 2 · Reserve Verification & AttestationPolicy-EnforcedINGESTDETECTALERT