Main Points:
- RLUSD trading volume surged by over 100% amid market volatility.
- Launched in December 2024 with full U.S. dollar backing and NYDFS approval.
- Integrated into Aave V3 on Ethereum, with defined supply and borrow caps.
- Positioned to challenge USDT and USDC, aiming for $2 trillion by 2028.
- Adoption bolstered by XRPL and Ethereum multi-chain issuance.
- Regulatory backing and institutional advisory board enhance credibility.
- Next steps include expanded DeFi integrations and cross-border payment trials.
1. RLUSD Volume Skyrockets amid Market Turbulence
Ripple USD (RLUSD), Ripple’s U.S. dollar–pegged stablecoin, witnessed an unprecedented spike in trading activity in late April 2025. On April 22, trading volume jumped by 102%, reaching $37.71 million in a single day according to CoinMarketCap data. A separate report indicated an even sharper peak of 110% growth on April 21, underscoring growing trader interest during periods of heightened volatility. This surge aligns with broader market movements, including Bitcoin’s rebound above $89,000, signaling investors’ preference for stable assets to navigate swings in risk-off environments.
Stablecoins traditionally see volume increases when spot markets fluctuate, as traders swiftly convert volatile holdings into dollar-pegged tokens. RLUSD, despite being one of the newest entrants since its December 2024 launch, has already demonstrated resilience, suggesting robust market confidence in Ripple’s offering.
2. A December 2024 Debut with Firm Regulatory Roots
Ripple announced RLUSD’s launch on December 17, 2024, after securing final approval from the New York Department of Financial Services (NYDFS) on December 10. Each RLUSD token is fully backed by U.S. dollar deposits, government bonds, and cash equivalents held in segregated reserve accounts. This approach mirrors industry best practices established by Tether (USDT) and Circle (USDC), both of which maintain transparent audits of reserves.
The NYDFS approval not only validated RLUSD’s reserve structure but also reinforced Ripple’s post-SEC litigation momentum. Following its landmark legal victory over the U.S. Securities and Exchange Commission in 2023, Ripple has leveraged regulatory goodwill to expedite stablecoin issuance, positioning RLUSD as a compliant alternative for institutional and retail users.
3. Deep Integration with Aave V3 on Ethereum
A pivotal development for RLUSD’s DeFi footprint was its integration into Aave V3’s Ethereum market. RLUSD deposits on Aave V3 are capped at 50 million tokens, while borrowing is limited to 5 million tokens. These parameters aim to balance liquidity provision with risk management, ensuring that RLUSD’s inclusion does not destabilize Aave’s lending pools.
By enabling RLUSD supply and borrow markets, Aave users can earn interest on deposits or leverage RLUSD as collateral for variable-rate loans. This move not only amplifies RLUSD’s utility within DeFi but also drives demand for transaction fees on both Ethereum and the XRP Ledger, which are paid in XRP and subsequently burned—creating a deflationary mechanism that may benefit the broader Ripple ecosystem.
4. Multi-Chain Strategy: XRPL and Ethereum Issuance
From its inception, RLUSD was architected for dual-chain issuance on both the XRP Ledger (XRPL) and Ethereum. XRPL issuance leverages the ledger’s native alphanum4 token standard (RLUSD), providing near-instant settlement and minimal fees. On Ethereum, RLUSD is issued as an ERC-20 token, compatible with the full suite of DeFi protocols beyond Aave, including Uniswap, Curve Finance, and MakerDAO.
This multi-chain strategy mitigates single-chain risk and broadens RLUSD’s accessibility across diverse user cohorts. Institutions favor the compliance and throughput of XRPL, while DeFi enthusiasts on Ethereum benefit from composability and collateralization opportunities. As of late April 2025, XRPL addresses hold approximately 294 million RLUSD in circulation, with Ethereum addresses accounting for the balance of a 294 million-token supply.
5. Competitive Landscape and Long-Term Ambitions
RLUSD enters a market dominated by USDT and USDC, which command nearly 90% of total stablecoin capitalization (over $180 billion combined). Despite this concentration, Ripple projects RLUSD could attain a $2 trillion market cap by 2028, driven by ongoing DeFi integrations, institutional partnerships, and cross-border payment corridors.
To support these ambitions, Ripple convened a high-profile advisory board, including Sheila Bair (former FDIC Chair) and David Puth (ex-CEO of the CENTRE Consortium). Their oversight enhances governance credibility, bolstering confidence among banks, corporates, and regulators exploring on-chain dollar settlement solutions.
6. Institutional Use Cases and Cross-Border Payments
Beyond trading and lending, RLUSD is poised for adoption in cross-border remittances and corporate treasury management. Ripple’s On-Demand Liquidity (ODL) service, which converts fiat into XRP and back, could incorporate RLUSD rails to offer real-time settlement with minimal FX risk. Pilot programs in corridors such as the Philippines–Japan corridor have already demonstrated sub-two-second settlement times using XRPL rails—advantages that extend directly to RLUSD transactions.
Corporates seeking to diversify treasury holdings also benefit from yield opportunities via Aave V3 and other money-market protocols. By allocating excess cash into RLUSD, firms can earn protocol-driven interest, manage intercompany transfers on-chain, and maintain regulatory compliance through transparent, auditable reserve attestations.
7. Next Steps: Expanding DeFi and Payment Integrations
Ripple’s roadmap for RLUSD includes:
- Further DeFi Partnerships: Talks are underway with MakerDAO, Curve, and Yearn Finance for RLUSD vaults and yield aggregator strategies.
- Layer-2 Deployments: Exploring deployment on Ethereum rollups such as Optimism and Arbitrum to reduce gas costs and improve transaction speed.
- CBDC Interoperability: Collaborations with central bank digital currency (CBDC) pilots to enable seamless conversion between RLUSD and government-issued digital currencies.
- Enhanced Regulatory Reporting: Quarterly attestations by top-tier auditors to ensure ongoing reserve transparency and bolster institutional uptake.
These initiatives aim to deepen RLUSD’s ecosystem, driving both retail and institutional engagement.
Ripple’s RLUSD has swiftly risen from a December 2024 newcomer to a formidable stablecoin contender. Its remarkable volume growth—over 100% in single-day spikes—underscores robust market demand amid volatility. Deep integrations with Aave V3, dual-chain issuance, and a seasoned advisory board position RLUSD for long-term expansion against entrenched rivals USDT and USDC. As Ripple extends DeFi partnerships, Layer-2 deployments, and cross-border payment solutions, RLUSD is set to play a pivotal role in the on-chain dollar economy, offering both stability and yield to traders, institutions, and global payment facilitators alike.
