Ripple’s RLUSD: Dollar Redemption Depends on Customer Approval
Edited by Steinar Vigdel Kolnes, Editor, Oslo
RLUSD holders face different access rules depending on whether they redeem dollars directly, sell through an exchange or use lending products.
Ripple’s RLUSD stablecoin offers multiple ways for users to move out of the token, but the process varies by channel. Direct redemption for U.S. dollars is not automatically available to every holder.
According to The Defiant, redeeming RLUSD directly for dollars requires an approved customer relationship. That makes direct issuer-related redemption distinct from selling the stablecoin on a crypto exchange.
Depositing RLUSD into yield or lending products also operates under separate terms from dollar redemption or exchange trading. Users therefore need to consider the specific eligibility, liquidity and counterparty conditions attached to each route.
Source: The Defiant
