Ripple creating a tokenized form of USD? Ripple USD (RLUSD) is iconic. Ripple is riding high after its victory and freedom from the Securities and Exchange Commission (SEC) long court case that almost took the cryptocurrency to the grave. Now, XRP to USD is at $2.528237, up 17.86% in the last month, 110% over six months, and 358% over a one-year trading window. XRP holders will be happy. And now they’ve announced something to make them even happier—a stablecoin to maintain a constant value of one US dollar.
To think how far the coin has come is incredible, and we believe that RLUSD will be a game-changer for the stablecoin market. Read on to find out why.
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The Ripple USD Concept
RLUSD actually entered the market on December 17th, 2024, but it wasn’t until now that people started talking. Almost 70% of RLUSD will be stored on the Ethereum network, a surprising announcement for a lot of people, considering Ripple has its own cheaper, efficiently functioning ledger.
But, as it stands, most stablecoins, approximately $125 billion worth, are hosted on the Ethereum network. So, it actually makes sense. And Ethereum is a massive network with huge liquidity pools, user adoption, and an incredible infrastructure for token utility.
On-chain data shows RLUSD released with a total supply of 294,042,711 tokens, with only 94,405,112 on the XRP ledger. Not that it makes much of a difference, although trading through the Ethereum network is considerably more expensive and slower.
The benefit of any stablecoin is that, when pegged to the US dollar, the value is 1:1. So, 1 RLUSD equals 1 US dollar. The aim for Ripple is to then use this stablecoin to facilitate what it does best—cross-border payments for its enterprise clients. The hope is that the transactions will be cheaper and more efficient, specifically for institutions.
Will RLUSD Replace Ripple XRP?
Ripple Labs, Inc., the developer of Ripple XRP and Ripple USD, has confirmed that RLUSD won’t replace XRP. Its OG cryptocurrency, XRP, has only just begun to thrive after years of turmoil with the SEC. In December 2020, the SEC started legal investigations and proceedings against Ripple XRP for ‘failing to register its crypto tokens as required under the US securities laws.’ Ripple always denied this with absolute certainty, despite the SEC claiming there was $1.3 billion made by selling XRP tokens in an unregistered securities offering. Ultimately, XRP won the legal battle in October 2024 after the court ruled XRP isn’t a security under US law.
Since the win, the cryptocurrency has absolutely thrived, and there’s no chance RLUSD will ever replace it. The concept behind RLUSD is completely different from XRP.
How Has Ripple USD Performed So Far?
Looking at the numbers, Ripple USD isn’t performing as well as its older sister. It entered the market on December 17th, 2024, at $1.0016. Today, it’s at $0.9996. A small drop of 5.14% in its short lifetime, but Ripple Labs didn’t exactly produce this coin to grow into the biggest stablecoin there is – and there’s still time for that to happen. Stablecoins are pegged against the US dollar for, as the name suggests, stability. That’s their one and only role. So it doesn’t necessarily matter that the value of RLUSD itself is dropping.
But if you look at the previous 48-hour trading window, RLUSD took a massive nosedive of 31%, which, of course, led investors to panic. The stablecoin market cap also dropped by 0.3%. It’s obvious there’s not as much market interest in RLUSD compared to XRP, but we don’t think there ever will be. Despite that, the current community market sentiment shows 96% of people in favor of a bullish run for the stablecoin.
Is RLUSD Worth an Investment?
If you hope to find the next Bitcoin or XRP boom with RLUSD, you might be barking up the wrong blockchain.
RLUSD was never built for sky-high price hikes. It was built for stability, trust, and practical use in a market that desperately needs digital cash that holds its value. The fact that it is fully backed, regularly audited, and compliant with strict regulations makes it a very different beast from speculative crypto assets.
That being said, if your goal is to hedge against wild crypto swings, RLUSD might deserve a spot in your digital wallet. It is ideal for investors who want to move quickly between assets without losing value or for institutions needing reliable cross-border payment solutions. RLUSD offers security, efficiency, and the peace of mind that a dollar today will still be a dollar tomorrow.
Ripple is rewriting the rulebook with RLUSD, and it feels like only the beginning. This is not just another stablecoin fighting for attention. It is a statement that Ripple is here to lead, innovate, and connect traditional finance with the digital age in a way few others can. RLUSD might not be the hottest ticket for quick-profit hunters, but it offers something even more valuable—stability, trust, and purpose.