XRP News Today: Ripple's Stablecoin Gambit: A New Benchmark in Digital Finance

Ripple has entered a high-stakes stablecoin market with the launch of Ripple USD (RLUSD), a digital currency designed to compete directly with Tether’s USDT and Circle’s USDC. Launched in December 2024 following regulatory approval from the New York Department of Financial Services, RLUSD is issued on Ripple’s XRP Ledger (XRPL) and is also available on the Ethereum blockchain. The stablecoin was announced in April 2024, with beta testing commencing in August 2024, signaling a strategic shift by the company to diversify its digital asset offerings beyond its flagship XRP token [1].

A key differentiator for RLUSD is its focus on institutional and B2B (business-to-business) markets. In August 2024, Ripple announced the acquisition of Rail, a stablecoin technology firm, for $200 million. Rail's technology is widely used in global B2B stablecoin transactions, a market segment where RLUSD aims to establish a dominant presence. In addition, Ripple acquired multi-asset prime brokerage Hidden Road for $1.25 billion in April 2025 to enhance RLUSD’s clearing and financing capabilities. The stablecoin’s reserves are now custodied by Bank of New York Mellon (BNY), a move that aligns it with USDC in terms of institutional credibility and security [1].

The integration of Chainlink’s pricing standard for Ethereum-based RLUSD transactions further enhances the coin’s appeal by providing verifiable data for cross-border transactions. MetaComp’s StableX has also partnered with RLUSD, enabling its use in over 31 currencies. Despite its institutional focus, RLUSD has gained traction among retail users, with trading volume accounting for 29% of its market capitalization—slightly higher than USDC’s 26% [1]. This dual appeal to both institutional and retail markets positions RLUSD as a versatile player in the stablecoin ecosystem.

Institutional adoption of RLUSD is gaining momentum. Notably, crypto exchange Bullish recently used RLUSD in its $1.15 billion IPO settlement process, which involved a mix of stablecoins and was coordinated by Jefferies as the billing and delivery agent. The funds were transferred to Coinbase for custody, illustrating how stablecoins can streamline capital market settlements and reduce operational risks. Bullish’s CFO emphasized that stablecoins like RLUSD offer near-instant settlements, enhancing transparency and reducing risk in financial transactions [3].

At the same time, Tether has made strategic moves to strengthen its position in the U.S. market. On August 19, 2025, the company appointed Bo Hines, former executive director of the Trump administration’s White House Crypto Council, as its U.S. strategy advisor. Hines is tasked with shaping Tether’s market entry and building relationships with U.S. policymakers. This appointment comes as Tether seeks to comply with new federal regulations under the GENIUS Act, which establishes a framework for stablecoin oversight. Hines’s deep connections with the Trump administration and his role in passing crypto-related legislation could significantly bolster Tether’s efforts to gain regulatory acceptance in the U.S. [4].

The competitive landscape is intensifying as both Ripple and Tether pursue institutional adoption. RLUSD’s market capitalization has grown rapidly from $53 million in March 2025 to $666.6 million, reflecting growing investor confidence. Ripple’s long-term goal is to make RLUSD a benchmark stablecoin with dual state and federal oversight, a milestone that would significantly enhance its legitimacy in the traditional financial system [2]. Meanwhile, Tether’s expansion into the U.S. market is being closely watched, particularly given its historical ties to regulatory scrutiny and its increasing political connections under the Trump administration.

Source:

[1] If You Like XRP, Here's A Major Reason To Buy The Ripple Stablecoin (https://www.barchart.com/story/news/34255210/if-you-like-xrp-heres-a-major-reason-to-buy-the-ripple-stablecoin)

[2] 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)

[3] Ripple's RLUSD gains institutional traction in Bullish IPO ... (https://cryptoslate.com/ripples-rlusd-and-donald-trump-linked-usd1-used-in-bullishs-1-1-billion-ipo-settlement/)

[4] Tether (USDT) Taps Bo Hines, Trump's Crypto Advisor, to ... (https://www.coindesk.com/business/2025/08/19/tether-taps-bo-hines-former-white-house-crypto-council-head-as-advisor-for-u-s-strategy)

[5] Tether hires Trump's top crypto official Bo Hines to help ... (https://fortune.com/crypto/2025/08/19/trump-bo-hines-tether-crypto-white-house-stablecoins/)