Better Stablecoin Buy: USD Coin vs. Ripple USD

Core Insights - Stablecoins have become a conservative alternative to traditional cryptocurrencies, being pegged to the U.S. dollar unlike Bitcoin which lacks a defined market value [1] Group 1: Stablecoin Overview - Stablecoins are useful for quick cross-border transfers and can be held without a bank account, offering higher yields than traditional savings accounts [2] - USD Coin (USDC) has a market cap of $73.3 billion, making it the second-most-valuable stablecoin, while Ripple USD (RLUSD) has a market cap of $1.5 billion, ranking ninth [6] Group 2: USD Coin - USD Coin was launched by Circle in 2018 and is backed 1:1 by U.S. dollars and short-term U.S. Treasuries, with monthly attestations from independent auditing firms [7] - The structure of USD Coin is more transparent and centralized, appealing to conservative investors who prefer institutional backing [8] Group 3: Ripple USD - Ripple USD was launched in 2024 and operates as an "IOU" issued by individual gateways on the XRP Ledger, backed by U.S. dollars in the gateway's bank account [9] - The decentralized nature of Ripple USD relies on the reputation of the issuing gateway, which poses risks if the gateway fails to hold sufficient cash [10] Group 4: Investment Recommendation - For most investors, USD Coin is considered a better stablecoin than Ripple USD due to its straightforward structure and institutional backing, while Ripple USD's decentralized approach may be less stable for conservative investors [11]