XRP News Today: Binance and Ripple Launch RLUSD, U.S. Dollar-Backed Stablecoin with 4.2% Yield and BNY Mellon Custody

Binance and Ripple have jointly launched RLUSD, a U.S. dollar-backed stablecoin designed to serve as an institutional-grade financial instrument. Introduced in December 2024, RLUSD is fully compliant with U.S. regulatory frameworks and operates on the XRP Ledger, offering investors an annual yield of up to 4.2%. The stablecoin, issued by Ripple, is supported by 1:1 U.S. dollar reserves and custodied by BNY Mellon, marking a significant step toward institutional adoption in the stablecoin sector. Binance, the world’s largest cryptocurrency exchange, has integrated RLUSD into its ecosystem, positioning it as a direct competitor to established stablecoins like USDC and PayPal USD [1].

The collaboration leverages Ripple’s operational efficiency and Binance’s global liquidity networks to enhance market stability. RLUSD’s supply surged to 122.5 million units by July 2025, reflecting rapid adoption driven by institutional confidence in its regulatory compliance and transparency [3]. This growth is underpinned by strategic partnerships, including BNY Mellon’s role in safeguarding reserves and Bluechip’s highest "A" rating, which validates the token’s robustness [4][5]. The stablecoin’s alignment with the GENIUS Act, signed into U.S. law, further reinforces its legitimacy in a regulatory landscape increasingly favorable to digital assets [1].

Ripple has also committed to using RLUSD for social impact, pledging $25 million to fund education-related nonprofit initiatives. This philanthropic focus underscores the firm’s broader vision to integrate digital assets into societal infrastructure while expanding the stablecoin’s utility beyond traditional financial markets [2]. Meanwhile, Binance’s endorsement of RLUSD as its first major yield-bearing product highlights the exchange’s strategic pivot toward regulated, institutional-grade offerings [1].

Market analysts note that RLUSD’s success may not directly translate to price movements in Ripple’s native token, XRP. While the stablecoin benefits from the XRP Ledger’s infrastructure, CoinCheckup observed that XRP’s valuation has remained largely independent of RLUSD’s adoption metrics, indicating separate market dynamics for the two assets [6]. This decoupling emphasizes the distinct roles of stablecoins and native cryptocurrencies within the crypto ecosystem, with stablecoins serving as a bridge to traditional finance.

The launch of RLUSD aligns with broader regulatory shifts in the U.S., where legislative efforts like the GENIUS Act aim to standardize stablecoin operations and expand their utility in digital payments. If the projected $2 trillion market cap for stablecoins by 2028 materializes, RLUSD’s institutional-grade framework could position it as a cornerstone of this growth. The integration of stablecoin-backed financial products, supported by major custodians and regulatory clarity, may further attract institutional investors seeking stable, yield-generating assets [1].

Sources:

[1] [U.Today] [https://u.today/ripple-stablecoin-supply-rockets-in-july-with-122500000-rlusd-minted]

[2] [U.Today] [https://u.today/ripple-stablecoin-supply-rockets-in-july-with-122500000-rlusd-minted]

[3] [U.Today] [https://u.today/ripple-stablecoin-supply-rockets-in-july-with-122500000-rlusd-minted]

[4] [Instagram] [https://www.instagram.com/p/DMnvOtwChWi/]

[5] [Coin Edition] [https://coinedition.com/author/coineditionteam/]

[6] [CoinCheckup] [https://coincheckup.com/blog/best-crypto-to-buy/]