Lawyer Bill Morgan, well-known for his support of XRP, has strongly criticized the worldās largest stablecoin issuer, Tether, arguing that its reserve management lacks credibility. In contrast, he praised Rippleās stablecoin RLUSD, which he says sets a higher standard of transparency.
The Reserve Dispute: Tetherās Weak Point
Morgan pointed out that Tether (USDT), despite years of doubts over its reserves, still refuses to use an independent third-party custodian. According to him, this remains a major flaw that undermines its trustworthiness. On the X platform, he further noted that Tether has never agreed to a truly ācredible auditā conducted by an outside firm.
āTo be fair, I must admit one thing ā Tether has never lost its peg to the dollar,ā Morgan acknowledged. Nevertheless, he described the lack of independent custody as a fundamental issue.
RLUSD Takes the Lead
On the other hand, Morgan highlighted that Ripple entrusts RLUSDās reserves to BNY Mellon, one of the worldās largest asset custodians. This, he argued, makes RLUSD a more reassuring choice for investors.
Rippleās stablecoin has also been growing rapidly. Over the past month, its market cap increased from $527 million to $666 million ā a 26% surge.
RLUSD is also becoming increasingly integrated into traditional financial infrastructure. Recently, it was used to settle proceeds from the Bullish exchange IPO. According to Jack McDonald, Rippleās Senior Vice President for Stablecoins, RLUSD is emerging as the āgold standard in compliance,ā citing its use as collateral, in cross-border settlement, and now, for the first time, in IPO payments.
Tether Strengthens, but the Debate Continues
Meanwhile, Paolo Ardoinoās Tether has shown its financial strength ā reporting $2.6 billion in profits in Q2 2025, while revealing that it holds both gold and Bitcoin reserves. The company also issued $13.4 billion worth of USDT during the same quarter. Furthermore, it hired former White House Crypto Council executive Bo Hines as a strategic advisor for its planned U.S. expansion.
Whatās Next?
The U.S. Office of the Comptroller of the Currency (OCC) has recently allowed community banks to partner with stablecoin issuers ā a development that could directly benefit Ripple. The company is also applying for a U.S. banking license to further embed RLUSD into traditional finance.
The battle for stablecoin dominance between USDT and RLUSD is clearly heating up. While Tether leans on its stability and strong market presence, Ripple is betting on transparency and trust.
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