Ripple’s RLUSD: The Stablecoin That Just Won’t Quit! 💸😂

by

Ah, behold the tale of Ripple’s USD-pegged stablecoin, RLUSD, which, like a stubborn weed in a garden of digital currencies, has managed to sprout a market capitalization of $244.2 million by the end of Q1 2025! 🌱 This feat was achieved across the XRP Ledger (XRPL) and Ethereum, proving that even in the wild world of crypto, some things just refuse to die.

On the XRPL alone, RLUSD has gallantly reached a market cap of $44.2 million, proudly waving its flag as the largest stablecoin on the network, according to the latest report by Messari. With this growth, the total market cap of fungible tokens, known as Issued Currencies, has surged by a whopping 6.5% QoQ to $281.5 million. Who knew numbers could dance so well? 💃

RLUSD Stablecoin: Q1 2025

Yet, despite this remarkable achievement, the adoption of stablecoins on XRPL remains as limited as a cat’s interest in a bath. 🐱💦 Compared to the titans of the stablecoin world, Tether (USDT) and USD Coin (USDC), which ended Q1 with market caps of $144.0 billion and $60.1 billion respectively, RLUSD is like a small fish in a vast ocean. 🐟

Historically, the arrival of a trusted stablecoin in a new execution environment has sparked liquidity events that could make a firework show look dull, as seen with Cardano’s iUSD in 2023. These coins often serve as the key pairing asset in automated market makers (AMMs), like the cherry on top of a crypto sundae. 🍒

Until recently, regulatorily compliant tokens like RLUSD, which feature Clawback – a mechanism on XRPL that allows issuers to retrieve distributed tokens – were as compatible with the network’s automated market maker (AMM) as oil is with water. This all changed in January when the AMM Clawback amendment was implemented, allowing such tokens to finally join the party. 🎉

This update is expected to boost AMM activity as more compliant assets launch on XRPL. Potential applications include enabling on-chain trading of previously illiquid real-world assets (RWAs), earning yields through AMM participation, and cross-chain price arbitrage. It’s like opening a treasure chest of possibilities! 🏴‍☠️

Adoption Curve

RLUSD made its grand debut on December 17, 2024, on both XRPL and Ethereum, fully backed by US dollar deposits, short-term US Treasuries, and other cash equivalents. Monthly attestations provided by third-party firms ensure that it’s not just a mirage in the desert of digital finance. 🌵

In January, Ripple announced the integration of Chainlink Price Feeds on Ethereum to provide RLUSD pricing data. By April, RLUSD was added to Ripple’s cross-border payment platform, Ripple Payments, while Kraken decided to join the fun by launching trading support. Additional Q1 listings came from LMAX Group, Zero Hash, and Bitstamp, joining the ranks of Uphold, Bitso, MoonPay, Archax, CoinMENA, Independent Reserve, and Bullish. It’s a veritable crypto carnival! 🎡

To further bolster the infrastructure around RLUSD, Korean custody provider BDACS signed a strategic partnership with Ripple in February to offer custody services for XRP, RLUSD, and other digital assets. Because what’s a stablecoin without a little extra security, right? 🔒

Read More

2025-05-24 17:24