XRP News Today: Ripple Expands RLUSD to Ethereum L2s to Boost DeFi Liquidity

Ripple's Multichain Expansion of RLUSD

Ripple is set to expand its U.S. dollar-backed stablecoin, RLUSD, to multiple Ethereum layer-2 (L2) blockchains, leveraging Wormhole's Native Token Transfers (NTT) standard according to reports. The move is part of the company's broader strategy to position RLUSD as a multichain utility asset, supporting decentralized finance and institutional adoption. Ripple aims to test RLUSD on chains such as Optimism, Base, Ink, and Unichain before a full rollout next year, pending regulatory approval according to analysis.

The stablecoin, which has already gained traction on Ethereum and the XRP Ledger, now holds a total supply of over $1 billion. Ripple's senior vice president of stablecoins, Jack McDonald, emphasized that RLUSD is designed to serve as a regulated, liquid on-ramp to the digital-asset economy according to company statements. The company's push into L2 blockchains is intended to drive further efficiency and scalability across the onchain ecosystem.

The expansion of RLUSD to L2s is expected to enhance liquidity and utility for institutional and retail users alike. Wormhole's NTT standard enables native cross-chain transfers without wrapping or synthetic assets, preserving regulatory compliance and reducing counterparty risk. This approach aligns with Ripple's vision of a multichain future, where stablecoins serve as the backbone of digital finance.

Regulatory Milestone for RLUSD

Ripple's regulatory progress has been a key factor in its strategy to scale RLUSD. The company recently secured conditional approval from the Office of the Comptroller of the Currency (OCC) for a national trust bank charter, which would place RLUSD under both federal and state oversight according to the announcement. This dual regulatory structure is a first for stablecoins and is expected to strengthen investor confidence. Ripple also awaits final approval from the New York Department of Financial Services (NYDFS) to roll out the stablecoin publicly on L2 chains according to industry reports.

The regulatory clarity is crucial for Ripple's multichain ambitions. By securing these approvals, Ripple aims to set a precedent for compliance in the rapidly evolving DeFi landscape. Jack McDonald noted that stablecoins are the gateway to institutional adoption, and RLUSD's regulatory framework will help facilitate broader acceptance according to market analysis. This step also supports Ripple's broader vision of bridging traditional finance and the crypto economy through scalable, secure infrastructure.

Cross-Chain Synergy with wXRP and DeFi

In tandem with RLUSD's expansion, Ripple is also seeing growth in the use of wrapped XRP (wXRP), which enables the native XRP token to integrate with DeFi on major blockchains like Ethereum and Solana. Hex Trust, a regulated custodian, is issuing wXRP using a 1:1 backing model and institutional-grade custody. The token's launch includes over $100 million in total value locked, providing a strong liquidity foundation.

The synergy between wXRP and RLUSD is being highlighted as a key driver of cross-chain utility. Markus Infanger of RippleX said the move aligns with growing demand for regulated DeFi access and reinforces XRP's role in a multichain future. Giorgia Pellizzari of Hex Trust added that the pairing enables broader liquidity pairs and enhances DeFi participation for both retail and institutional users. This development supports Ripple's goal of making XRP more versatile and accessible across different blockchain ecosystems.

Outlook for the Multichain Ecosystem

The combined rollout of RLUSD and wXRP underscores Ripple's commitment to interoperability and regulatory compliance. As L2 adoption grows, the company is positioning itself to capture a larger share of the multichain DeFi market. Ripple CEO Brad Garlinghouse has been vocal about the importance of cross-chain collaboration in advancing the crypto industry beyond legacy systems according to industry commentary. Analysts are watching to see how this strategy influences institutional adoption and the broader tokenization of financial assets.

For investors, the expansion of RLUSD and the introduction of wXRP present new opportunities for liquidity and yield generation. However, regulatory outcomes and market dynamics will be critical in determining the long-term success of these initiatives. Ripple's ability to maintain compliance while scaling its offerings will be a key focus for both partners and critics in the coming months.