XRP News Today: Ripple Challenges Stablecoin Giants with Institutional-Grade RLUSD

Ripple's stablecoin, Ripple USD (RLUSD), has seen growing traction in early 2025, particularly as concerns about Tether's (USDT) transparency have intensified. Launched in December 2024 after final regulatory approval from the New York Department of Financial Services (NYDFS), RLUSD operates on both Ripple’s native XRP Ledger (XRPL) and the Ethereum blockchain. The stablecoin is designed to facilitate fast, low-cost transactions, positioning it as a competitive alternative in the stablecoin market [1].

Ripple has taken strategic steps to strengthen RLUSD’s infrastructure and appeal to institutional users. In April 2024, the company announced the acquisition of Rail, a stablecoin technology firm that processes over 10% of global B2B stablecoin transactions, for $200 million. This move aligns with Ripple’s focus on capturing the institutional and cross-border payments market, a segment traditionally dominated by USDT and USD Coin (USDC) [1].

In addition to bolstering its technology, Ripple has secured a $1.25 billion investment in multi-asset prime brokerage Hidden Road to enhance RLUSD’s clearing and financing capabilities. The company also chose Bank of New York (BNY) to custody RLUSD reserves, mirroring the approach taken by USDC, which is also backed by BNY. This decision adds an additional layer of credibility and institutional trust, as BNY is a well-established custodian in traditional finance [1].

From a technical standpoint, RLUSD has also integrated Chainlink's (LINKUSD) pricing standard, ensuring verifiable data on Ethereum. A partnership with MetaComp’s StableX further expands RLUSD’s utility by enabling cross-border payments in over 31 currencies. These integrations support Ripple’s strategy of appealing to both institutional clients and global enterprises seeking efficient stablecoin solutions [1].

Despite its focus on the institutional market, RLUSD has also attracted retail users. Volume on RLUSD has reached 29% of its market capitalization, a metric that slightly exceeds the 26% observed for USDC. This indicates that retail adoption is on the rise, driven by growing trust in RLUSD’s security, speed, and transparency compared to existing stablecoins [1].

Meanwhile, Tether, the largest stablecoin by market capitalization, faces increasing scrutiny over its reserves and transparency. While Tether claims its tokens are fully backed by its reserves, recent regulatory and market pressures have heightened skepticism about the extent of its fiat coverage. These concerns have created an opportunity for emerging stablecoins like RLUSD to gain market share, particularly among users who value institutional-grade custody and regulatory compliance [2].

As the stablecoin landscape continues to evolve, Ripple’s entry into the market with RLUSD represents a significant challenge to established players like Tether and Circle. With growing regulatory clarity in the U.S. and increasing institutional adoption, RLUSD is well-positioned to expand its user base and capture a larger share of the stablecoin market in the coming months [1].

Source:

[1] If You Like XRP, Here's a Major Reason to Buy the Ripple ... (https://finance.yahoo.com/news/xrp-major-reason-buy-ripple-184634275.html)

[2] Tether – Official Home of Tether (https://tether.to/en/transparency/?tab=usdt%EF%BC%89%E6%9F%A5%E7%9C%8B%E3%80%82Tether)