XRP News Today: USDC Launches on XRP Ledger Boosting DeFi Activity by 339.8%

USDC, the world’s second-largest stablecoin by market cap, has officially launched on the XRP Ledger (XRPL), marking a significant milestone in the crypto industry. This move is expected to reshape the stablecoin landscape and boost the broader crypto ecosystem. USDC, with a market cap of $61 billion, now allows developers and institutions to mint and redeem the stablecoin directly on XRPL, unlocking new possibilities for payments, decentralized finance (DeFi), and enterprise adoption. XRPL is already known for its ultra-fast transactions and low fees, and the addition of USDC enhances its real-world use cases.

Ripple advocate and CryptoLaw founder John Deaton hailed the move as a major milestone, calling it a “significant step” for both XRPL and the entire XRP ecosystem. Deaton’s message is clear: This isn’t just a partnership—it’s a power move. The launch of USDC on XRPL is seen as a strategic push to challenge Ripple's dominance in global payments. Some experts suggest that Circle’s move to launch USDC on XRPL might be a strategic push to challenge Ripple's dominance in global payments. Rumors even hint at a rejected $5 billion acquisition offer from Ripple to Circle—a bold play that never went through. Now, Circle seems to be collaborating, not competing, by building on Ripple’s blockchain instead. Regardless, the launch is expected to boost XRPL adoption and bring more innovation to the ecosystem.

DeFi activity on XRPL is already on the rise. The Total Value Locked (TVL) in early September 2024 was $14.21 million, which surged to $67.66 million by late September 2024, and further increased to $87.27 million by mid-January 2025. The current TVL stands at $56.61 million. This growth in TVL is a positive signal for investors, often correlating with increased demand and rising token prices. In fact, XRP has surged 339.8% over the past year, outperforming both Bitcoin and Ethereum. In September 2024, XRP saw a 7.98% increase, and by January 2025, it had surged by 46%.

The total stablecoin market cap on XRPL stands at $91.06 million, with USDC entering the arena. RLUSD currently dominates with $85.88 million (94.32% dominance), followed by TBILL with $5.18 million (5.68% dominance). The ecosystem saw a 37.82% jump in 7 days, and with USDC now in the mix, the competition and liquidity could soon surge. The integration of USDC on XRPL is a strategic move that leverages the strengths of the XRP Ledger, known for its speed, scalability, and low transaction costs. This launch is not just about adding another stablecoin to the XRPL; it signifies a shift in the crypto payments landscape. The presence of USDC on XRPL indicates that the underlying technology and infrastructure are becoming more important than the brand itself. This could lead to a scenario where protocols, rather than individual brands, will dictate the future of stablecoins.

Ripple's expansion of the XRP Ledger with USDC comes at a time when the company is also navigating a legal battle with the U.S. Securities and Exchange Commission (SEC). The SEC lawsuit, which alleges that Ripple conducted an unregistered securities offering, has been a significant challenge for the company. However, the launch of USDC on XRPL could be seen as a strategic move to diversify Ripple's offerings and strengthen its position in the market, potentially providing some relief from the legal pressures. The launch of USDC on XRPL without the need for a bridge is another notable aspect of this development. This means that USDC can be issued natively on the XRP Ledger, making transactions faster and more efficient. The XRP Ledger is already home to the native stablecoin RLUSD, and the addition of USDC further solidifies its position as a hub for stablecoins. This move is expected to attract more institutional investors and users to the XRP Ledger, further boosting its ecosystem.

Ripple's CEO, Brad Garlinghouse, has shared a bold projection that XRP could capture 14% of SWIFT's volume over the next few years. This projection underscores Ripple's ambition to become a major player in the global payments market. The launch of USDC on XRPL is a step towards achieving this goal, as it enhances the utility and appeal of the XRP Ledger for both retail and institutional users. The integration of USDC on XRPL is a significant development that could reshape the stablecoin landscape and position Ripple as a dominant force in the crypto payments sector.