The XRP Ledger's stablecoin ecosystem contracted sharply this week, with total market capitalization falling 13.19% to approximately $999.9 million, according to data from DefiLlama. The decline marks a significant pullback from earlier in October, when stablecoin supply on the ledger exceeded $1.3 billion.
Despite the contraction, XRPL maintains its 12th-place ranking globally by stablecoin supply, holding one position ahead of Aptos. Ripple's dollar-pegged stablecoin RLUSD accounts for approximately 90.75% of the ledger's total stablecoin value.
RLUSD Leads the Decline
RLUSD's market cap on XRPL fell to around $907 million as of October 22, 2026, representing a 14.39% weekly decrease. Recent activity on the ledger reveals the mechanism behind the shift: Ripple Treasury burned $50.6 million RLUSD on XRPL while simultaneously minting $38.6 million on Ethereum, resulting in a net $12 million reduction in circulating supply on the ledger.
This pattern indicates that Ripple is redirecting RLUSD liquidity away from XRPL toward Ethereum, where decentralized finance applications and collateral use cases are more established. RLUSD's total supply across all blockchain networks remains between $2.35 billion and $2.4 billion, suggesting the reallocation is strategic rather than a reduction in overall token circulation.
Institutional Partnerships Expand
Despite the supply pullback, Ripple has announced new institutional integrations for RLUSD on XRPL. Cross River Bank integrated RLUSD into its core banking platform on the ledger, providing fintech firms access to RLUSD-based settlement, cross-border transfers, and blockchain payments.
Ripple also partnered with Arf to deliver RLUSD-backed working capital to licensed cross-border payment firms on XRPL. Arf intends to deploy this liquidity through XRPL's native lending protocol once the protocol launches.
Standard Chartered opened institutional custody services for RLUSD through its Dubai DIFC branch, offering regulated clients a mechanism to hold the stablecoin.
Market observers are monitoring whether stablecoin supply returns to the $1 billion to $1.2 billion range and tracking how Ripple allocates future RLUSD mints and burns between XRPL and Ethereum.
