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Key Takeaways
What are some advantages Ripple’s stablecoin RLUSD has?
The focus on regulatory compliance in the U.S and meeting institutional use cases in payment solutions means it wins out on compliance and speed.
Is this enough to claw back the enormous lead Tether has in market share?
Tether is still better suited for general use cases, and its high liquidity and widespread use across multiple chains in trading and DeFi mean USDT is still the number one choice for users.
Ripple Labs’ RLUSD stablecoin, the official Ripple stablecoin, is less than a year old. It was launched on 17 December, 2024. While new on the scene, it has big ambitions.
With a $1.02 billion market cap, RLUSD is among the top 10 USD-pegged stablecoins. Over the past week, the average daily trading volume has been $101 million. For context, the stablecoin sector has a combined market cap of $313 billion and a daily trading volume of $126.6 billion.
Tether [USDT], launched in 2014, has a big advantage here. It is the dominant stablecoin by far, with a market cap of $184.3 billion and a $109 billion daily trading volume, as per CoinMarketCap.
The greater reach of Tether means it serves as the backbone of the cryptocurrency ecosystem. It helps provide liquidity across the market and is vital for trading across a variety of networks.
Compliance with U.S regulations could give RLUSD a competitive advantage
While Tether claims to be backed by 1:1, it has faced scrutiny and criticism in the past. In 2021, the U.S. Commodity Futures Trading Commission said that Tether had “falsely represented it would undergo routine, professional audits to demonstrate that it maintained ‘100% reserves at all times’ though Tether reserves were not audited.”
In September 2025, the launch of U.S-compliant stablecoin USAT gave Tether a regulated rail to reach banks, fintechs, and corporates while also maintaining the USDT offshore reach. This move is also expected to weaken the stablecoin competitor Circle’s USDC.
While this ensures compliance, it also means that access would not be fully permissionless, and transactions will be traceable and transparent.
On the contrary, RLUSD was approved by the New York Department of Financial Services (NYDFS) in December 2024. The GENIUS Act, signed into law in July, could give RLUSD an edge in institutional adoption.
Ripple could become the native, onshore liquidity provider through RLUSD. This would boost the stablecoin’s traction in the U.S. However, for now, it is far behind Tether in terms of size and reach. In the coming years, this rivalry would be something to watch.