Institutional Finance Enters the Stablecoin Era with Ripple’s RLUSD

Ripple’s RLUSD stablecoin has gained notable traction within institutional and capital markets, as evidenced by its integration into high-profile financial transactions and regulatory discussions. The firm's stablecoin, RLUSD, was among the digital assets used in the settlement process of Bullish’s $1.15 billion IPO in August 2025. This marked a significant moment in the growing adoption of blockchain-based solutions in traditional financial operations. Bullish disclosed that the proceeds were received in a mix of stablecoins, including Ripple’s RLUSD on the XRP Ledger, as well as USD1 linked to former U.S. President Donald Trump. Other stablecoins in the settlement included USDC and EURC from Circle, PYUSD and USDG from Paxos, and others from Societe Generale-FORGE and Agora. These tokens were primarily settled on the Solana network, with Jefferies acting as the billing and delivery agent. After conversion, the funds were transferred to Coinbase for custody, underscoring the company’s intent to leverage blockchain for secure and transparent capital management [1].

David Bonanno, Bullish’s CFO, emphasized that stablecoins are central to the company’s capital strategy, citing Solana’s ability to enable near-instant settlements. This approach reduces operational risks and increases transparency, aligning with broader market trends toward blockchain-based settlement solutions. Bullish’s IPO, which priced shares at $37—above the expected range—resulted in a valuation of $5.4 billion, reflecting investor confidence in platforms that blend traditional finance with blockchain infrastructure. The use of RLUSD in this context highlights its growing institutional acceptance and underscores its role in bridging digital and traditional financial ecosystems [1].

Ripple’s RLUSD has also featured in another significant institutional deal: a $75 million credit facility with Gemini, a U.S.-based crypto exchange. Gemini’s agreement, revealed in its IPO filing, allows it to borrow up to $75 million in both USD and RLUSD, with the potential to expand to $150 million based on performance metrics. This partnership is particularly relevant for fintech startups in Asia, where stablecoins can facilitate cross-border payments and payroll solutions. By using RLUSD, Gemini is promoting liquidity and broader stablecoin adoption. The move also aligns with the increasing use of stablecoins in cross-border transactions, where faster settlement times and lower costs can provide substantial benefits to businesses seeking efficient financial operations [1].

In addition to these institutional uses, RLUSD’s potential as a cross-border payroll solution is gaining attention. The advantages include greater liquidity, reduced transaction costs, and regulatory compliance. RLUSD is backed by a regulated entity, which enhances its legitimacy in markets like Asia, where financial regulations are strict and evolving. Furthermore, the flexibility of crypto payroll—offering employees the option to receive salaries in stablecoins—catered to a workforce increasingly comfortable with digital assets. However, challenges remain, including navigating complex regulatory landscapes, ensuring market acceptance, and mitigating technology-related risks such as security and custody [1].

Regulatory clarity around stablecoins is also evolving in the U.S. The Trump administration's "Strengthening American Leadership in Digital Financial Technology" report outlined a policy roadmap for digital assets, emphasizing the need for regulatory and supervisory clarity for banks engaging in digital asset activities. The report urged federal agencies to issue further guidance on legal permissibility, custody services, and the use of third parties in digital asset operations. Additionally, it recommended eliminating barriers for state-chartered banks to participate in the digital asset space and ensuring transparency in the application process for bank charters and Federal Reserve master accounts. These developments signal a growing acceptance of stablecoins and blockchain-based financial products within the traditional banking system [3].

The regulatory landscape has been further shaped by the enactment of the GENIUS Act in 2025, which established a federal framework for payment stablecoins. This law restricts stablecoin issuance to approved entities, including subsidiaries of insured banks, federal non-bank issuers, and state-qualified issuers. It mandates that stablecoins be fully backed by reserves and imposes transparency and compliance obligations on issuers. The act also excludes stablecoins from being classified as securities, reducing regulatory uncertainty for businesses. While banks and depository institutions may continue to issue digital assets representing deposits, they must do so through approved subsidiaries and adhere to the GENIUS Act's requirements [4].

Overall, Ripple’s RLUSD has demonstrated its value as a tool for institutional finance, cross-border transactions, and payroll solutions. Its integration into major capital market events and regulatory discussions underscores its growing role in the financial ecosystem. As the market continues to evolve, the interplay between regulatory clarity, institutional adoption, and technological innovation will likely shape the trajectory of stablecoin usage in the coming years [1].

Source:

[1] Ripple's RLUSD and Donald Trump-Linked USD1 Used in Bullish's $1.15 Billion IPO Settlement (https://cryptoslate.com/ripples-rlusd-and-donald-trump-linked-usd1-used-in-bullishs-1-1-billion-ipo-settlement/)

[2] Stablecoin Issuer Applies for OCC National Trust Charter (https://www.jdsupra.com/legalnews/stablecoin-issuer-applies-for-occ-7310818/)

[3] Arnold & Porter Discusses Banking Issues in President's Working Group Report on Digital Assets (https://clsbluesky.law.columbia.edu/2025/08/20/arnold-porter-discusses-banking-issues-in-presidents-working-group-report-on-digital-assets/)

[4] The Basics: Stablecoins and The GENIUS Act (https://www.jdsupra.com/legalnews/the-basics-stablecoins-and-the-genius-3747119/)

[5] Gemini's $75 Million Credit Line with Ripple (https://www.onesafe.io/blog/gemini-ripple-credit-line-stablecoin-adoption)