Ripple’s stablecoin RLUSD approaches $900 million market cap in less than a year

Less than a year after launch, RLUSD is approaching a market capitalization of $900 million.

Ripple’s RLUSD stablecoin is approaching a market capitalization of $900 million, according to the company’s latest independent certification report from October. The figure has more than doubled in just three months, from $400 million in August.

Launched less than a year ago, RLUSD is pegged 1:1 to the US dollar and backed by deposits, short-term US Treasuries and other cash equivalents, offering stability and security to users.

Growth of Ripple’s RLUSD

More than $1.5 million in renewed University Blockchain Research Initiative (UBRI) grants have already been fully funded at RLUSD. Last week, Brale, a platform that allows companies to issue USD-backed stablecoins, integrated with XRP Ledger (XRPL) to enable settlement in RLUSD.

Shortly after, Ripple also completed the acquisition of prime brokerage firm Hidden Road in a $1.25 billion deal, which will now operate as Ripple Prime. The company’s clients reportedly use RLUSD as collateral or hold their balances in the stablecoin. The updates were shared by Jack McDonald, Senior Vice President of Stablecoins at Ripple.

As reported by cryptopotatoVivoPower International PLC’s electric vehicle subsidiary Tembo e-LV began accepting payments in RLUSD in September. The main objective behind the measure is to streamline international payments by addressing the long settlement times and high costs often associated with traditional electronic transfers.

According to Tembo, transactions made with the stablecoin can be completed almost instantly and at a fraction of the cost of conventional methods. The company expects the move to RLUSD to improve operational efficiency, reduce transaction costs, and expand its treasury options within the decentralized finance (DeFi) ecosystem.

The decision to use RLUSD instead of Ripple’s more established cryptocurrency, XRP, has sparked curiosity among observers. While the company did not clarify its reasoning, the choice is likely due to RLUSD’s price stability, making it more suitable for payments and settlement use cases compared to the volatility of XRP.

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RLUSD and XRP can coexist

Alexis Sirkia, captain of Yellow Network, recently said that he sees Ripple’s RLUSD as a complement, and not a rival, to XRP. According to him, the stablecoin acts as a “liquidity amplifier,” which could support XRP’s role rather than competing with it.

Sirkia explained that the integration of RLUSD within the US banking system provides it with the compliance and infrastructure necessary to function as a trusted settlement layer for institutions. As RLUSD activity grows, so does demand for XRP as a bridge asset within the XRP Ledger (XRPL) ecosystem.

He noted that the stablecoin is already being used in African markets through payment platforms such as Chipper Cash and Yellow Card and is facilitating real-time exchanges with tokenized money market funds. With expanding institutional engagement, including ETFs, and the broader integration of RLUSD, Sirkia expects transaction volumes across the network to accelerate and therefore strengthen the link between traditional financial systems and decentralized finance.