Ripple USD (RLUSD): Aspiration to Become a Stablecoin for Global Banks and Financial Institutions

When mentioning Ripple, most cryptocurrency investors immediately think of XRP (XRPUSD) – the coin that has been associated with this brand for many years. However, as we approach the end of 2024, Ripple has officially launched a new strategic product: Ripple USD (RLUSD) – a stablecoin pegged to the USD, promising to change the game in international payments. The Birth Journey of RLUSD Ripple announced plans to issue the stablecoin RLUSD in April 2024, conducting beta testing in August 2024, and by December 10, 2024, RLUSD was officially licensed for circulation by the New York Department of Financial Services (NYDFS). RLUSD is issued directly on the XRP Ledger (XRPL) – the private blockchain of Ripple, allowing for transactions with low fees and fast speeds. At the same time, RLUSD is also available on the Ethereum blockchain, expanding its multi-chain usability. The Difference of RLUSD Unlike many other stablecoins that focus solely on individual users, RLUSD is designed for financial institutions and banks. Some of Ripple's strategic moves include: Technology acquisition: In August 2024, Ripple spent 200 million USD to acquire Rail – a company that processes over 10% of global B2B stablecoin transactions. This technology is seen as a crucial piece for RLUSD to serve the enterprise payment market. Expanding financial capabilities: Previously, in April 2024, Ripple spent 1.25 billion USD to acquire Hidden Road – a multi-asset brokerage firm to enhance its clearing and funding capabilities for RLUSD. Ensuring safety: Ripple chose BNY Mellon as the custodian for RLUSD reserves, similar to Circle (USDC), creating strong confidence in safety. As a result, RLUSD is considered the only stablecoin currently proactively conquering the organization and banking sector, rather than just targeting the individual investor community. Expanding Technology, Attracting Both Individual Users Although focused on the organizational sector, RLUSD is gradually becoming popular in the retail community: Integrate Chainlink to provide transparent pricing data on Ethereum. Combined with MetaComp’s StableX, it facilitates cross-border payments with over 31 currencies. As a result, the retail trading volume of RLUSD currently accounts for 29% of the market capitalization, higher than the 26% of USDC. Challenges and Potential The only weakness of RLUSD is that it is still too new compared to USDC – a stablecoin that currently has massive liquidity. However, the growth rate is very impressive: the market capitalization rose from 53 million USD ( in March 2024 to the current 666.6 million USD. Ripple is also pursuing the ambition to obtain a national banking license. If successful, RLUSD will become the first stablecoin to have dual state and federal oversight, setting a new standard for trust and transparency in the stablecoin market. Advice for XRP Investors With RLUSD being issued directly on XRPL, XRP holders can easily use RLUSD alongside XRP, optimizing for regular trading activities. Although still young, RLUSD is showing rapid growth and a clear strategy aimed at banks, institutions, and even the general public. If Ripple continues to succeed in expanding its technology and obtaining banking licenses, RLUSD could very well become a dominant competitor against USDC in the near future.