Ripple’s newly launched stablecoin, RLUSD, has recorded $100 million in minting volume since April 1, marking one of its highest issuance surges in recent months. The spike in demand follows Ripple’s integration of RLUSD into its official payments product, with early adoption by payment providers BKK Forex and iSend.
Market Dynamics Shift as RLUSD Gains Traction
Industry analysts suggest that RLUSD could disrupt the dominance of established stablecoins like Tether ($USDT)and USD Coin ($USDC) in the crypto payments space. The latest issuance includes two major tranches:
$50 million minted on Tuesday, April 2
Another $50 million issued late Wednesday, April 3
The stablecoin’s rapid adoption coincides with growing interest in $XRP Ledger (XRPL)-based DeFi applications, where RLUSD is increasingly utilized. Experts predict that heightened stablecoin activity on XRPL could drive additional demand for $XRP , the network’s native token.
RLUSD: A 1:1 USD-Pegged Stablecoin with Institutional Appeal
RLUSD is a fully collateralized stablecoin, pegged 1:1 to the U.S. dollar and available on both the $XRP XRP Ledger and Ethereum blockchain. Its reserves consist of:
U.S. dollar deposits
Short-term U.S. Treasuries
Cash equivalents
The stablecoin maintains its peg through a reserve-backed model, where each RLUSD token is redeemable for $1. Users can mint RLUSD by depositing fiat with **authorized partners or burn tokens to redeem cash. Market arbitrage mechanisms further stabilize its price:
- If RLUSD trades below $1, traders buy and redeem at par, increasing demand.
- If RLUSD trades above $1, arbitrageurs mint new tokens, boosting supply.
Enhanced Security: XRPL’s "Clawback" Feature Goes Live
In January 2025, an XRPL amendmentactivated the "clawback" function, enabling issuers to reclaim specific tokens—including RLUSD—from user wallets under predefined conditions. This feature enhances regulatory compliance and risk mitigation, making RLUSD an attractive option for institutional users.
Outlook: RLUSD to Reshape Stablecoin Competition
As Ripple expands RLUSD’s utility in payments and DeFi, market watchers anticipate increased competition in the stablecoin sector. With its strong reserve backing, XRPL integration, and institutional-grade security, RLUSD is positioned to challenge legacy stablecoins while potentially boosting XRP’s ecosystem growth.
