Ripple's U.S. dollar-backed stablecoin RLUSD has surpassed PayPal USD (PYUSD) in market capitalization, according to CoinGecko data cited in the report. RLUSD's market cap has grown to around $2.71 billion, compared with roughly $2.69 billion for PayPal's stablecoin.
The milestone marks a new record for RLUSD and comes less than two years after Ripple formally introduced the stablecoin in December 2024.
Validator highlights adoption
An XRP Ledger validator known as Vet commented on the development, saying: "RLUSD is now a Top 5 USD backed stablecoin. On its way to be in Top 3." Vet also pointed to Ripple's long-standing contribution to building the XRP Ledger and said growing RLUSD adoption could potentially lead to faster adoption of the blockchain by traditional financial institutions.
Vet stressed the increasing relevance of RLUSD's rising payment volume and its increased use on the XRP Ledger. He also noted that RLUSD has opened the door to numerous integrations with banks and crypto exchanges. According to Vet, these integrations could motivate financial institutions to run infrastructure supporting the XRP Ledger and to integrate other tokenized assets on it.
Institutional partnerships
RLUSD's record follows several key institutional partnerships and exchange integrations that Ripple has announced recently. On Oct. 28, Ripple announced a partnership with Coinbase to provide RLUSD for retail and institutional users across Coinbase Exchange, Coinbase Prime and its retail trading app.
As part of the partnership, Coinbase also announced support for RLUSD across blockchain networks including the XRP Ledger, Ethereum and Base.
Ripple's partnership with banking giant BNY, which serves as custodian of reserves for RLUSD, is also deepening. In October, Standard Chartered launched institutional custody services for RLUSD on the XRP Ledger.
