On the XRP Ledger, a stablecoin is created by an issuer holding real-world assets as collateral, and creating equivalent tokens on the ledger. Users establish a trust line with the issuer to receive, hold, and transfer issued Ripple USD (RLUSD) tokens.
Ripple's stablecoin implementation utilizes the fungible tokens functionality that is native to the XRP Ledger.
| Ledger Flag | Description | Enabled |
|---|---|---|
lsfGlobalFreeze |
Freezes all assets issued by the account. | ✅ |
lsfNoFreeze |
Permanently give up the ability to freeze individual trust lines or disable global freeze. | ❌ |
lsfRequiredAuth |
Require authorization for users to hold balances issued by this address. | ❌ |
lsfAllowTrustLineClawback |
Allows an account to claw back tokens it has issued. | ✅ |
lsfAccountTxnID |
Track the ID of an account's most recent transaction. | ❌ |
lsfDepositAuth |
Enable deposit authorization on this account. | ✅ |
lsfRequireDest |
Require a destination tag for incoming payments. | ❌ |
lsfDefaultRipple |
Enable rippling on the an account's trust lines by default. | ✅ |
lsfDisallowXRP |
XRP should not be sent to this account. | ✅ |
lsfTickSize |
An account-level setting and applies to all tokens issued by the same address. | ✅ |
For more information see the official XRP Ledger documentation.