Ripple has unveiled plans to expand its RLUSD stablecoin to four Ethereum layer-2 networks, including Coinbase’s Base, marking a significant step towards a multichain future for the digital asset. This announcement comes shortly after the firm received conditional approval to operate as a U.S. trust bank, providing RLUSD with a dual layer of regulatory oversight.
In a recent press release, Ripple emphasized its commitment to enhancing RLUSD’s adoption, highlighting its partnership with Wormhole to conduct testing on the new layer-2 networks: Base, Optimism, Kraken’s Ink, and Uniswap’s Unichain. This initiative is part of Ripple’s broader “true Multichain Strategy,” designed to position the stablecoin for increased usage across multiple platforms, pending necessary regulatory approvals.
Currently, RLUSD is primarily available on the Ethereum network and the XRP Ledger (XRPL), boasting a market capitalization of over $1 billion. It ranks as one of the fastest-growing stablecoins based on its year-to-date growth. Ripple’s goal of expanding RLUSD to layer-2 networks is seen as crucial for building a “scalable, efficient, and interoperable” future for the stablecoin.
By leveraging Wormhole’s Native Token Transfers (NTT) standard, Ripple has been able to maintain native issuance and control over RLUSD while ensuring secure and flexible on-chain liquidity movement across various new ecosystems. The regulatory advantages RLUSD holds could position it favorably as more institutions transition to on-chain transactions. In addition to its efforts in the U.S., Ripple has secured multiple licenses, including approval from Abu Dhabi’s Financial Services Regulatory Authority (FRSA), to facilitate the stablecoin’s adoption in regional markets.
Ripple’s strategy does not merely aim to enhance RLUSD’s appeal but also aspires to boost the utility of XRP alongside it. The firm has expressed a desire to issue RLUSD wherever XRP demand exists, reinforcing the usefulness of both assets. They pointed to HEX Trust’s initiative to issue wrapped XRP (wXRP) on Solana, which will simplify the process for XRP holders to use their assets alongside RLUSD as a primary liquidity pair on supported chains.
The introduction of wrapped XRP on Solana is expected to unlock new opportunities within the broader crypto ecosystem, enabling businesses to offer services such as payments, swaps, and checkout options involving both XRP and RLUSD. HEX Trust has also indicated plans to issue wXRP on other networks, including Optimism and Ethereum, further enhancing the potential use cases for XRP.
Ripple is committed to complementing RLUSD’s launch on additional chains next year, provided that regulatory approval is obtained. This initiative signifies Ripple’s ambition to significantly broaden the utility and adoption of both RLUSD and XRP in an evolving digital financial landscape.
