Key Insights:
RLUSD has seen an increase in adoption with its RLUSD being integrated into Ripple Payment Network and listed on Kraken.
Ripple launched RLUSD in Dec 2024, aiming for a zero slippage transfer medium and to bring liquidity into the XRP chain.
Kraken's adoption could drive listing on other exchanges like Binance and Coinbase.
Replace integrated RLUSD into its Ripple Payments, a network that runs across multiple countries and helps in efficient cross-border payments via the XRPL Ledger.
The need to integrate RLUSD into Ripple payments was necessary because previously when XRP was used as a medium of transfer, it resulted in price volatility and slippage while transacting. RLUSD, being a stable coin, does not let this happen and transfers value with minimum slippage.
Products made by Ripple Labs, such as XRP, XRPL, and RLUSD, have been witnessing high growth in the recent past as regulatory clarity emerged in their favor. Further, after the end of its SEC case, it was able to pursue multiple growth avenues, such as the US government's proposal to use the XRPL Ledger for its internal transactions and multiple banks using XRPL for their own internal usage.
Another milestone in Ripple's case is the RLUSD's listing on Kraken, the 13th largest crypto exchange with a 25-hour trading volume of $1.5 billion, at press time. RLUSD has also seen listings in Europe, a place where it gets extremeley difficult for US stablecoins to get listed. In Europe, Bitstamp is the first exchange to list the stablecoin.
RLUSD Listed on Kraken
Kraken
With such a high rate of adoption, we soon might see RLUSD being listed on multiple other exchanges like Coinbase, Binance US, and Binance Global.
RLUSD was launched by Ripple Labs in Dec 2024 to bridge market liquidity to the XRP Ledger and also act as a zero-slippage settlement medium for its RWA and cross border payment businesses.
Ripple labs launched RLUSD on two blockchains: the XRPL and the Ethereum Blockchain.
The decision was taken in this way probably because RLUSD could bridge excess liquidity to the XRP Ledger from Ethereum, which has the highest number of stablecoins than any other chain. At press time Ethereum had around $124 billion worth of stablecoins on its chain.
Top 5 Blockchain in Terms of Net Stablecoin Reserves
DeFi Llama
The RLUSD was launched with a motive to support two things: first bring liquidity into the XRP Ledger, and second act as a zero slippage medium of transfer for RWA markets and other applications.
During the crypto winter, market liquidity dried up to an extent that it was difficult to process any transactions even with a liquidity pool. The presence of a stablecoin on any blockchain helps users protect their funds without having to leave the chain.
Previously, XRP was used as a token for settlement for multiple uses like cross-border transactions, and was also proposed as a token for settlement in RWA markets like in the case of Abrdn. However, since XRP's price rises and falls according to market conditions, it becomes difficult to store funds in it for a long time. This was solved with RLUSD.
In the future, RLUSD could be used to not only settle cross-border transactions or RWA market transactions but also internal transactions of the US Government (as proposed by the SEC).
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