Ripple, a prominent blockchain firm associated with the XRP Ledger, is set to launch its U.S. dollar-backed stablecoin, RLUSD, on several Ethereum layer-2 (L2) blockchains, including Optimism, Coinbase’s Base, Kraken’s Ink, and Uniswap’s Unichain. This initiative aims to enhance the integration of the $1.3 billion token into the multichain ecosystem. The company announced the beginning of a testing phase on Monday, with a broader rollout expected next year, subject to regulatory approval from the New York Department of Financial Services (NYDFS).
This pilot program will utilize Wormhole’s Native Token Transfers (NTT) standard, enabling RLUSD to transition seamlessly across various blockchain networks without the need for wrapping or synthetic assets. This capability is designed to maintain liquidity and uphold regulatory oversight while facilitating a variety of decentralized finance (DeFi) use cases on platforms engineered for enhanced speed and reduced costs.
Stablecoins have emerged as an essential component of the digital finance landscape, acting as a crucial link between traditional financial systems and the cryptocurrency market. Valued at approximately $300 billion, stablecoins are cryptocurrencies whose market prices are pegged to fiat currencies like the U.S. dollar. Currently, RLUSD operates on both Ethereum and the XRP Ledger networks and is issued under a trust charter from the NYDFS.
Recently, Ripple received initial approval for a federal trust bank charter from the Office of the Comptroller of the Currency (OCC). This milestone positions RLUSD as the first stablecoin to be regulated under both state and federal authorities.
“Stablecoins are the gateway to DeFi and institutional adoption,” stated Jack McDonald, senior vice president of stablecoin at Ripple. “By launching RLUSD — the first U.S. Trust Regulated stablecoin on these L2 networks — we are not just expanding utility; we are setting the definitive standard where compliance and on-chain efficiency converge.”
Additionally, the rollout will include a wrapped version of the XRP token (wXRP), enhancing the ease with which holders can use XRP in conjunction with RLUSD for transactions, lending, and swaps across the supported chains. This would allow retail crypto users to seamlessly convert wXRP to RLUSD within DeFi applications on platforms like Optimism or Base without having to leave their chosen blockchain.
