- Ripple’s RLUSD stablecoin strengthens its payments ecosystem, positioning XRP as a key liquidity asset.
- As RLUSD adoption grows, XRP demand could surge, enhancing its role in global cross-border transactions.
Ripple has officially launched its highly anticipated stablecoin, Ripple USD (RLUSD), marking a major milestone in its efforts to revolutionize global payments. CNF previously highlighted Ripple’s expansion, particularly integrating RLUSD into the XRP ecosystem across two exchanges.
Initially announced in April, RLUSD began trading in December, following approval from the New York State Department of Financial Services (NYDFS). This move places Ripple in direct competition with stablecoin giantslike Tether (USDT) and Circle’s USDC, both of which dominate the $150 billion stablecoin market.
A Game-Changer for Cross-Border Payments
RLUSD is designed to operate on both the Ethereum network and the XRP Ledger, with plans for broader adoption across additional exchanges. However, it won’t be immediately available on major platforms like Coinbase or Robinhood.
Regarding XRP Demand to Soar, the effort to raise the standard for stablecoins, Ripple CEO Brad Garlinghouse emphasized RLUSD’s importance in expanding Ripple’s international payment network, stating in a recent press release:
Early on, Ripple made a deliberate choice to launch our stablecoin under the NYDFS limited purpose trust company charter, widely regarded as the premier regulatory standard worldwide. As the U.S. moves toward clearer regulations, we expect to see greater adoption of stablecoins like RLUSD, which offer real utility and are backed by years of trust and expertise in the industry.
Nevertheless, Ripple has been a major player in the $230 billion cross-border payments market, and RLUSD is expected to enhance its payment network by providing additional liquidity options alongside XRP.
With stablecoins playing an increasingly important role in global finance, RLUSD could greatly strengthen Ripple’s On-Demand Liquidity (ODL) services. By leveraging both XRP and RLUSD, Ripple aims to establish a seamless global payment system that challenges traditional banking infrastructure.
Regulatory Challenges and Market Impact
Industry experts suggest that RLUSD’s launch could drive greater demand for XRP. The integration of RLUSD into Ripple’s ecosystem reinforces XRP’s role as a bridge asset, potentially increasing its utility and price.
As stablecoin demand rises and Ripple continues to expand globally, the crypto payments landscape is set for major transformation.
At the time of writing, Ripple (XRP) is trading at $2.74, reflecting a 12.42% increase in the past day and a 16.48% gain over the past week, according to Coin Market Cap data. See XRP price chart below.
