Q. What is Ripple USD (RLUSD)?
A. Ripple USD (RLUSD) is a digital asset, known as a stablecoin, designed to maintain a stable value equal to one U.S. dollar. It’s natively issued on the XRP Ledger and Ethereum blockchain, used as a “digital dollar” for transferring, storing, and moving value across blockchains.
Q. Is RLUSD the same as holding U.S. dollars?
A. No. While RLUSD is designed to maintain a value equal to one U.S. dollar and is backed 1:1 with U.S. Dollars, it is a digital asset, not cash held in a traditional bank account. RLUSD does not carry FDIC insurance and is subject to risks specific to digital assets and blockchain networks.
Q. Is RLUSD available in both IRA and non-IRA accounts?
A. Yes. RLUSD is available in iTrustCapital Crypto IRAs (including Traditional, Roth, or SEP IRAs), Premium Custody Accounts (non-retirement accounts), and Treasury Accounts (for businesses, trusts, non-profits, and other entities). Earned rewards are the same for both retirement and non-retirement accounts.
Q. Can I earn rewards with RLUSD on iTrustCapital?
A. Yes, iTrustCapital offers RLUSD-related rewards. You can check out the full details and risk disclosures here.
Q. Are my RLUSD rewards automatically earning more rewards?
A. Yes. RLUSD rewards are compounded automatically, meaning any rewards you earn are added to your RLUSD balance and can begin earning additional rewards over time.
Q. When are my RLUSD rewards paid out?
A. RLUSD rewards accrue daily and are dispersed to users on a quarterly basis.
Q. Can I convert USD to RLUSD on iTrustCapital’s platforms?
A. Yes. You can convert U.S. dollars (USD) to RLUSD directly on iTrustCapital’s platform through our liquidity partnership with Coinbase Institutional. You can also convert back to USD in order to purchase other crypto assets on the platform.
Q. Are there any fees to convert USD to RLUSD on iTrustCapital’s platform? Are there fees to convert RLUSD back to USD?
A. No. There are no conversion fees between USD and RLUSD. One U.S. Dollar will get you one RLUSD.
Q. Can I buy cryptocurrency with RLUSD on iTrustCapital? Can I sell cryptocurrency for RLUSD?
A. RLUSD cannot be used to directly purchase supported digital assets (i.e; BTC, ETH, SOL, XRP, ETC) on iTrustCapital. Clients who wish to purchase other crypto assets on the platform must first convert their RLUSD to USD and then self-direct (Buy/Sell) into the other 90+ available assets, accordingly.
Q. Are the Current RLUSD Rewards Rates Guaranteed or Likely to Change?
A. Rewards rates and availability are not guaranteed and are subject to change based on iTrustCapital eligibility requirements, regulatory guidance, and market conditions.
Q. Is there a minimum or maximum amount of RLUSD I can hold?
A. There is no minimum or maximum amount of RLUSD you can hold in your iTrustCapital account.
Q. Can I transfer RLUSD in or out of my iTrustCapital account?
A. In-Kind RLUSD deposits are not currently possible into a PCA Account. Crypto IRA holders can transfer RLUSD out via an in-kind distribution. Clients who want to transfer RLUSD into their iTrustCapital account via IRA transfer can request to do so directly with our CX team.
Q. Are RLUSD rewards taxable?
A. It depends on your account type. RLUSD rewards earned within a Crypto IRA are generally considered non-taxable. Rewards earned outside of an IRA, such as in a Premium Custody Account, are technically considered income and may be subject to taxes. We recommend consulting a qualified tax professional for guidance specific to your circumstances.