Ripple is pushing crypto payments into everyday finance with its new stablecoin, RLUSD. The company’s plan is to win over big business and navigate regulations from day one, setting RLUSD up to compete with established rivals.
This isn’t just another digital dollar. The move is designed to upgrade Ripple’s payment services, spark a new DeFi scene, and meet the growing need for stablecoins that people can actually trust.
In light of the GENIUS Act’s passage, optimism is high too. According to Versan Aljarrah, Co-founder of Black Swan Capitalist, for instance, RLUSD might become the U.S Treasury’s weapon in globalising the digital dollar. He added,
“By tokenizing U.S. debt and integrating it with XRP’s liquidity layer, RLUSD can enable real-time, cross-border settlements. This is how value moves globally in a post-SWIFT world.”
Source: CoinGecko
Earning trust through regulations, transparency
RLUSD holds a one-to-one value with the U.S. dollar because it’s backed by actual dollar deposits, short-term U.S. government bonds, and similar cash assets. A Ripple-owned entity, Standard Custody & Trust Company, issues the coin under a charter from New York’s strict Department of Financial Services (NYDFS).
Gaining that NYDFS approval in December 2024 was a key part of Ripple’s plan to seem credible to large financial institutions. For total clarity, Ripple also promised to have a separate accounting firm check its reserves and publish the results every month.
A dual focus – Corporate payments and DeFi growth
Ripple is using RLUSD to tackle two distinct areas at once – Making international payments easier for companies and fueling the expanding world of DeFi.
For businesses and financial firms –
- RLUSD will plug directly into Ripple’s payment systems, giving them a steady and effective way to settle money transfers across borders. This works alongside XRP, which can serve as a quick go-between for swapping different currencies.
- By getting major exchanges like Uphold, Bitstamp, and Bitso on board early, Ripple made sure RLUSD had plenty of trading volume and was easy to get. This strong starting network is meant to pull in financial firms looking for a safe entry point into crypto.
For the DeFi world –
- In a clever move, RLUSD was launched on both the XRP Ledger (XRPL) and Ethereum to get the best of both worlds. The XRPL is perfect for payments with its nearly free, instant transactions. Ethereum, on the other hand, gives RLUSD access to the biggest and most active DeFi market.
- A stable, regulated coin is exactly what the XRP Ledger needed to get its own DeFi activity going. It provides a reliable asset for trading, lending, and other financial tools. Over on Ethereum, RLUSD can be woven into countless existing DeFi apps, which greatly expands its use. A deal with Chainlink to provide accurate pricing data makes RLUSD an even more dependable asset for these applications.
Competing in a crowded market
Right now, Tether (USDT) and USD Coin (USDC) are the kings of the stablecoin hill. Ripple is marketing RLUSD as the more open and rule-abiding choice. This focus on compliance comes at a good time, as governments in the U.S. and Europe are rolling out tougher rules for stablecoins.
The GENIUS Act passing in the U.S. gives a much clearer legal footing for by-the-book stablecoins like RLUSD.
Even though it was first aimed at corporate clients, regular users have flocked to RLUSD, especially on the XRP Ledger, thanks to its cheap and fast transactions. This surprise popularity shows RLUSD has wide appeal and can challenge the top stablecoins with every type of user.
Future hurdles and potential wins
RLUSD may have a solid start, but stealing market share from the giants won’t be easy. How Ripple’s long court fight with the SEC ends will also be a major turning point. If Ripple wins, it could massively increase confidence and open the doors for more big-money players.
The growth of RLUSD has been impressive, hitting a market cap over $577 million by July 2025, mostly because of high demand from the DeFi world.
That fast adoption, smart partnerships, and a solid commitment to following the rules make RLUSD a real threat in the crypto space. As finance keeps moving toward digital tokens and decentralized platforms, Ripple’s RLUSD is in a great position to help make crypto payments a normal part of life.