RLUSD Hits Record High Amid Ripple's Institutional Push - But XRP Is Left Behind

Ripple’s dollar-backed stablecoin, RLUSD, has reached a new all-time high amid a surge in institutional adoption. The token’s market capitalization now exceeds $1.38 billion, driven by strategic partnerships and expanding regulatory recognition.

Ripple recently announced a partnership with LMAX Group, a leading global cross-asset marketplace. RLUSD will be integrated as core collateral across LMAX’s institutional trading infrastructure. This enables banks, brokers, and buy-side institutions to leverage RLUSD for cross-collateralization and margin efficiency in spot crypto, perpetual futures, and CFD trading.

Institutional clients will benefit from enhanced liquidity, secure custody via segregated wallets, and 24/7 access to a cross-asset marketplace. This marks a significant step in the convergence of traditional finance and digital assets, particularly as stablecoins like RLUSD gain traction in regulated environments.

Why Did This Happen?

Ripple’s partnership with LMAX Group is part of a $150 million financing commitment to support the exchange’s cross-asset growth strategy. The integration of RLUSD as a core collateral asset reflects growing regulatory clarity in the U.S. and globally. Ripple’s SVP of stablecoins, Jack McDonald, emphasized that this move accelerates the utilization of RLUSD within one of the largest and most sophisticated trading environments.

Separately, RLUSD has been used as collateral for BlackRock’s tokenized funds and in cross-border payment flows. This development signals rising institutional confidence in regulated stablecoins and their role in the broader financial system. BlackRock’s adoption of RLUSD underscores the importance of regulatory-grade frameworks in institutional finance.

How Did Markets React?

The growing institutional traction for RLUSD has not translated into similar gains for XRP, Ripple’s native token. Despite XRP ETFs attracting $1.37 billion in cumulative inflows since late 2025, the token has faced volatility and limited on-chain activity. Exchange reserves for XRP have dropped to a six-year low, with holdings on Binance reaching a record low of 2.6 billion tokens.

Meanwhile, XRP’s on-chain metrics remain weak. The XRP Ledger (XRPL) saw a drop in decentralized exchange (DEX) volume and active traders, with TVL at just $72.76 million. While XRP ETFs have driven short-term liquidity, the token’s utility on the XRPL remains limited in practice.

What Are Analysts Watching Next?

The divergence between RLUSD’s institutional adoption and XRP’s on-chain performance raises questions about Ripple’s long-term value proposition. XRP is currently trading as a macro-sensitive, institutionally wrapped financial instrument, but its network usage remains low. Analysts are closely monitoring whether partnerships like the Evernorth-Doppler collaboration can drive more liquidity back onto the XRPL.

Institutional adoption of RLUSD is also being watched for its potential to strengthen the Ripple ecosystem. With RLUSD now functioning as collateral for BlackRock-linked products and supporting cross-border payments, its role as a bridge between traditional and crypto-native infrastructure is becoming clearer.

Despite XRP’s challenges, some analysts remain optimistic. The SEC’s settlement with Ripple in August 2025 removed the final hurdle for institutional investment, allowing asset managers to allocate capital without compliance concerns. With five major XRP ETF issuers now offering products, the long-term demand for XRP may stabilize if on-chain usage increases.