Tether or Ripple USD: Which Stablecoin Is the Better Buy Right Now?

Stablecoins were created to solve a simple problem: people wanted the speed of crypto without the constant price swings. These tokens track the value of the dollar and are now used for everything from sending money overseas to parking funds during market turbulence. But not all dollar tokens operate the same way, and that becomes obvious when comparing Tether (USDT) with Ripple USD (RLUSD).

Below is a closer look at how each one is built, where they fit in the crypto world, and the kind of user each one really suits.

Tether: The Most Used Dollar Token in Crypto

USDT has been around since 2014 and has grown into the dominant digital dollar across exchanges and trading platforms. Tether Limited, the company that issues it, originally launched USDT on the Bitcoin network and later expanded it to Ethereum and other chains. That early expansion is a major reason traders use it for moving money between exchanges and for activity in DeFi.

Tether’s growth also comes from convenience. It’s available on nearly every major blockchain, so users rarely worry about compatibility when moving funds around.

However, Tether’s backing has been debated for years. The company holds a mix of cash, U.S. Treasuries, and other short-term assets. It publishes reserve breakdowns, but it still hasn’t gone through a full independent audit — something critics often point out. This lack of full transparency hasn’t stopped its adoption, but it remains a topic that resurfaces regularly.

Ripple USD: A Newer Dollar Token With a Narrower Role

Ripple USD began in 2024 and was created specifically for the XRP Ledger. Unlike USDT, RLUSD isn’t issued by a single company. Instead, it is created as IOUs by different gateways — platforms like Bitstamp or GateHub — which hold real dollars in their accounts to back the tokens they distribute.

This structure is part of how the XRP Ledger was originally designed. Instead of one central issuer, value comes from gateways that users choose to trust. The method works well inside Ripple’s payment system, especially when institutions need to convert one currency into another quickly. RLUSD often acts as the middle step for these transfers.

But this model also has a trade-off: your risk depends on the gateway you selected. If a gateway mismanages its cash reserves, users holding its IOUs could lose funds. It’s similar to keeping money at a small financial institution that isn’t protected by insurance programs.

Because RLUSD lives mainly inside the XRP Ledger, it hasn’t spread across major blockchain ecosystems. Most traders outside Ripple’s network simply don’t have a reason to use it.

Which One Is the Better Buy?

RLUSD works well for institutions already tied to Ripple’s system, especially those that rely on the XRP Ledger for moving money between currencies. Its use is mostly limited to that environment.

USDT plays a far larger role in the broader crypto market. It moves across many blockchains, is supported by almost every major exchange, and is the stablecoin most traders handle daily. Because of that reach, USDT is the option that fits more buyers looking for a dollar token they can use anywhere.

Also Read: Litecoin, Solana and Chainlink Stand Out Among U.S. Crypto Coins This Week