The numbers tell a compelling story. This month alone, Ripple has created 42 million RLUSD tokens, all deployed on the Ethereum network rather than their own XRP Ledger.

It’s an interesting strategic choice, especially considering that the XRP Ledger can handle 1,500 transactions per second—dramatically outpacing Ethereum’s 15-30 transactions per second.

So why choose the slower network? The answer likely lies in Ethereum’s massive ecosystem. With over 8,000 active validator nodes as of early 2025, Ethereum offers unparalleled network effects and infrastructure that could accelerate RLUSD adoption.

Breaking Into a Crowded Market

RLUSD isn’t just another stablecoin—it’s Ripple’s bid to challenge the established giants. The token earned approval from the New York Department of Financial Services in December 2024, a regulatory green light that required extensive audits and compliance measures. Each RLUSD token maintains a strict 1:1 peg with the U.S. dollar, backed by U.S. Treasury securities.

This regulatory approval couldn’t have come at a better time. New U.S. Treasury guidelines proposed on June 15, 2025, emphasize the importance of audited reserves—exactly what RLUSD offers.

It’s positioning to take on Tether’s USDT and Circle’s USDC, which together control a commanding 86% of the $250 billion stablecoin market, according to a recent OneSafe report.

The Bigger Picture: Cross-Border Payments

For Ripple, RLUSD isn’t just about entering the stablecoin race—it’s about supercharging their existing business. The increased token supply could significantly enhance Ripple’s On-Demand Liquidity service, which already serves over 300 financial institutions worldwide.

Stablecoins now account for roughly 30% of the global remittances market, making RLUSD a potentially powerful tool for international money transfers.

Recent partnerships hint at RLUSD’s growing ambitions. A collaboration with Ondo Finance, announced on June 11, brought U.S. Treasuries to the XRP Ledger using RLUSD as the vehicle. It’s the kind of institutional-grade innovation that could differentiate RLUSD from its competitors.

Market Reactions: Optimism and Skepticism

The crypto community is taking notice. “Xfinancebull captured the sentiment perfectly in a recent X post: “Ripple didn’t just enter the stablecoin game; they’re scaling to run it.”

Meanwhile, observer 13thBen speculated about a potential future shift to the XRP Ledger, suggesting Ripple might eventually bring RLUSD home to their native blockchain.

The market metrics support the growing interest. RLUSD’s trading volume has surged 106%, directly challenging USDC’s market position, though it still trails far behind the established leaders.

For a stablecoin that only received regulatory approval six months ago, these numbers represent remarkable momentum.

What’s Next?

As crypto analyst @Xaif_Crypto wondered in their Saturday post, could RLUSD become the next “stablecoin giant”? With Ripple’s track record in institutional payments, regulatory compliance, and now aggressive expansion tactics, they’re certainly positioning themselves as serious contenders.