In 2026, the performance of XRP has faced significant challenges, coinciding with Ripple’s announcements of various institutional deals. Since reaching a peak of $2.42 in January, the price of XRP has plummeted 44%, now hovering around $1.35. Despite a series of institutional integrations, none have had a positive impact on the token’s price.
A noteworthy development came as Australia’s financial regulator, the Australian Securities and Investments Commission (ASIC), granted authorization for AUDC Pty Ltd’s AUDD stablecoin to operate as a regulated payment instrument on the XRP Ledger. This draws attention to whether AUDD could be the catalyst needed to drive Ripple’s expansion positively and ultimately impact XRP’s price.
The ASIC’s Australian Financial Services License (AFSL No. 700123) permits AUDC to provide non-cash payment facilities, aligning with the regulatory classification of digital payment instruments meant for actual transactions. This regulatory clarity enables banks and businesses in Australia to utilize AUDD for on-chain payments, removing previous compliance uncertainties that had deterred financial institutions from using the stablecoin.
Originally launched on the Stellar blockchain in November 2022, AUDD was expanded to the XRP Ledger in June 2023 by payments firm Novatti, which holds roughly 45% of AUDC. By early 2026, AUDD had processed over $1.4 billion in transaction volume on the Stellar network alone, participating in multiple government-led pilots investigating digital currency’s role within Australia’s payment systems.
Each AUDD token is backed 1:1 by Australian dollars held in segregated trust accounts with top-tier Australian banks. This structure ensures that funds are verifiable and separate from AUDC’s operational funds, similar to the backing arrangements of USDC.
The integration of AUDD on the XRP Ledger stands out, as it signifies a government-licensed financial instrument operating directly on the blockchain. This legitimizes the XRPL as a payment infrastructure under Australian law, a milestone none of Ripple’s previous partnerships have achieved.
In contrast, Ripple experienced its most significant month of institutional adoption in February 2026, signing deals with major financial entities like Deutsche Bank for cross-border transfers and Aviva Investors for tokenizing fund structures. However, these partnerships primarily utilize Ripple’s existing software for messaging and liquidity management, without engaging with the ledger directly. Although they marked significant progress for Ripple, none translated into increased demand for XRP, as institutional transactions take place without involving the token actively.
Despite the optimism surrounding AUDD, there are concerns that its addition might not enhance XRP’s price either. While AUDD introduces regulated on-chain volume to the XRP Ledger, it predominantly settles transactions in Australian dollars, not in XRP. This pattern is mirrored in other stablecoins like RLUSD and SG-FORGE’s EURCV. While these partnerships leverage XRPL’s speed and efficiency for transactions, the direct demand for XRP remains limited, often confined to transaction fees.
This situation highlights a disconnect between the growth of the XRP Ledger as robust infrastructure and the potential appreciation of XRP as an asset. While the ledger can host varied regulated stablecoins and process substantial tokenized transactions, the absence of a direct requirement to hold XRP continues to impede price movement.
Looking ahead, the establishment of AUDD does lay the foundation for scaling Ripple’s On-Demand Liquidity (ODL) service, which leverages XRP as a bridge currency. For ODL to thrive, it necessitates the presence of liquid, regulated stablecoins facilitating transactions across different corridors. With RLUSD for USD, EURCV for EUR, and AUDD for AUD, the XRP Ledger begins to establish itself as a multi-currency settlement layer where XRP could operate as a pivotal bridge.
Companies like Bitso, the largest crypto platform in Latin America, are already capitalizing on this potential, having expanded its use of Ripple Payments in early 2026 to settle transactions between the U.S. and Latin America in near real-time. This kind of real-world application for ODL not only utilizes XRP but also increases demand by necessitating purchases on one end and sales on the other.
Ultimately, the true test will be whether Australian banks adopt AUDD widely and if ODL can scale efficiently to cultivate meaningful XRP demand. The coming months will reveal whether this represents a pivotal moment for XRP or simply another unremarkable partnership in the ongoing saga of Ripple’s institutional dealings.
