The U.S. Treasury Department is giving stablecoins serious attention, and Ripple’s RLUSD is now part of that conversation alongside industry leaders like Tether (USDT) and Circle (USDC). In a recent presentation to the Treasury Borrowing Advisory Committee (TBAC), the department compared the reserve structures and market roles of four major stablecoins: USDT, USDC, RLUSD, and PayPal’s PYUSD.
The move comes as the GENIUS Act, a proposed regulatory framework for stablecoins, nears approval in the U.S. Senate. This act, if passed, could unlock trillions in capital inflow by providing legal clarity and setting new standards for stablecoin reserve backing. And the Treasury clearly wants to understand what’s backing these digital dollars.
What you'll learn 👉
How Ripple’s RLUSD Stacks Up
According to data from December 2024 (or April 2025 in USDC’s case), Ripple’s RLUSD is currently backed by a combination of money market funds (36.3%), cash (27.5%), and U.S. Treasury bills (36.2%). That puts it in a fairly balanced position compared to rivals.
For example, USDT holds over 65% of its reserves in T-bills, while USDC is heavily concentrated in money market funds – 88.8% of its reserve, to be exact. PYUSD is almost entirely backed by reverse repurchase agreements, with nearly 96% of its holdings in that category.
US Treasury Compares #Ripple Stablecoin, USDT, and USDC in Recent Report. 🧵 pic.twitter.com/PtIjwOM5Dd
— TheCryptoBasic (@thecryptobasic) May 28, 2025
While RLUSD’s total reserve size is much smaller compared to USDT or USDC, its inclusion in this Treasury-level comparison is big. It signals that Ripple is positioning RLUSD not just as a transactional stablecoin, but one with compliance and transparency in mind – critical factors for long-term adoption.
Read also: Why Ripple (XRP) Could Hit New All-Time High in June: Analyst Reveals Target
T-Bills Are Becoming the Backbone of Stablecoins
The U.S. Treasury report noted a trend that’s picking up steam: stablecoin issuers are allocating more of their reserves into U.S. Treasury bills. With the GENIUS Act in sight, and both it and the STABLE Act prohibiting interest-bearing stablecoins, the safest bet is to stick with T-bills and cash-like instruments.
Currently, stablecoin issuers collectively hold around $120 billion in T-bills, but that figure could explode to $1 trillion by 2028. That would make stablecoins a huge force in U.S. debt markets – on par with major institutional investors.
Ripple, if it continues to scale RLUSD alongside its cross-border payment infrastructure, may become one of the major players in this new digital financial ecosystem.
Stablecoin Market
Today’s stablecoin market is valued at around $250 billion, but projections from industry insiders like CoinFund’s David Pakman suggest that number could reach $1 trillion by the end of 2025. That means there’s still room for RLUSD to grow- especially if Ripple manages to link its stablecoin to XRP-based payment rails, central bank partnerships, or even EVM-compatible networks like the ones it’s developing now.
And given that this report comes straight from the U.S. Treasury, it’s a clear sign that the government isn’t just paying attention – it’s preparing for stablecoins to become a permanent part of global finance.
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