Ripple CTO David Schwartz Explains RLUSD Stablecoin’s Major Feature
David Schwartz, chief technology officer of Ripple, recently spoke about an important issue about Ripple’s Rlusd Stablecoin. His answer clarifies why RLUSD can be frozen or withdrawn, following discussions by legal expert Jeremy Hogan on the proposed Stablecoin bill.
The main features of Rlusd Stablecoin
Jeremy Hogan, a well-known lawyer and XRP enthusiast, shared his thoughts on the new Stablecoin bill. He questioned whether Stablecoins like RLUSD or USDC can be frozen after being transferred. So the X user then brought this question to Schwartz for his explanation.
David Schwartz confirmed It is indeed possible to freeze or catch the RLUSD. He explained that this feature is crucial to maintaining accurate balances on the ledger.
According to him, the issuer’s legal obligations must always be reflected correctly and events such as those outside the court order can change those obligations.
How does this feature work?
An XRPL validator called Vet joined the discussion, further explaining that Ethereum and XRP Ledger allow rlusd If law enforcement or court orders require freezing or paws.
The strikeback feature allows Ripple as issuer to retrieve the token under certain conditions. This is useful for cases where fraud, criminal activity, or mistakenly sending its error to the wrong address.
At the same time, this is consistent with Schwartz’s statement, indicating that this feature is designed to ensure legal compliance while maintaining transparency and security.
Approved strikeback feature on XRPL
In January, XRP Ledger approved a kickback amendment that allows issuers to retrieve tokens under certain conditions. The amendment also ensures that freezing tokens cannot be stored in Automatic market maker (AMMS).
With this amendment, RLUSD can now trade directly on XRP Ledger’s decentralized exchange (DEX), providing greater flexibility while maintaining legal compliance.
