RLUSD news: market cap growth and global adoption of the stablecoin

The Ripple USD (RLUSD) stablecoin is designed to act as a bridge between digital assets and traditional finance, as well as a regulator-approved instrument for the global banking industry.

Key features of Ripple USD (RLUSD)

Ripple USD, or RLUSD, is a fiat-backed stablecoin pegged to the U.S. dollar, initially launched on the XRP Ledger (XRPL) by Ripple's subsidiary — Standard Custody & Trust Company LLC (SCTC).

RLUSD is one of the few regulated stablecoins in the U.S. Its issuance is overseen by a trust company regulated by the New York State Department of Financial Services (NYDFS).

NYDFS is considered one of the strictest regulators in the digital asset sector. Experts note that the launch of Ripple USD is the result of Ripple's years-long efforts to establish dialogue with regulators, including a recent settlement with the SEC over issues related to the XRP cryptocurrency.

The peg of Ripple USD to the U.S. dollar is maintained through an arbitrage mechanism: if RLUSD deviates from the $1 peg, traders buy or sell RLUSD until balance is restored.

Additionally, every RLUSD token is backed by reserves consisting of cash and cash equivalents, audited monthly by an independent firm. This means RLUSD tokens can always be redeemed for U.S. dollars.

Later, Ripple added Ethereum support, making RLUSD usable within the Ethereum ecosystem as an ERC-20 token. This expansion allowed RLUSD to be integrated into major lending platforms in the decentralized finance (DeFi) sector. According to Ripple, support for other blockchains may be added in the future.

Integration with lending platforms enables two key use cases: secured loans denominated in RLUSD and yield opportunities for investors through liquidity provision in DeFi credit markets.

With its multi-chain architecture, RLUSD integrates with both traditional DeFi applications and Ripple's corporate banking solutions. Some banks, including Bank of America and BNY (Bank of New York), are already testing RLUSD for internal settlements.

Beyond regulatory compliance, Ripple USD provides banks with highly efficient cross-border transactions at low fees. Another major advantage is near real-time settlement on blockchain, eliminating delays caused by traditional banking intermediaries.

Experts emphasize that support from major institutions such as Bank of America is a crucial milestone for RLUSD's long-term adoption, particularly among institutional investors, boosting Ripple's overall financial ecosystem.

Even the U.S. Federal Reserve is exploring potential RLUSD integration into its FedNow payment system.

How Ripple USD works

Ripple USD is a fully centralized stablecoin, with issuance controlled by Ripple. The process works as follows:

1. Authorized institutions deposit U.S. dollars into designated Ripple accounts.
2. Ripple verifies the deposit and mints an equivalent amount of RLUSD on the agreed blockchain (XRPL or Ethereum).
3. Tokens are released into circulation, allowing holders to transact within the chosen ecosystem, including DeFi markets.

When redeemed, RLUSD tokens are permanently removed (burned) by Ripple, and the equivalent U.S. dollars are returned to the investor.

RLUSD market dynamics

As of September 2025, Ripple USD ranks 8th among stablecoins by market capitalization at $709 million, and is among the top 100 cryptocurrencies overall.

Approximately 88% of RLUSD supply is on Ethereum (624M out of 709M).

Since early 2025, RLUSD's market cap has grown more than 36-fold, with over 90% growth in the last quarter alone, signaling surging investor interest.

One of the main growth drivers was Ripple's expansion into Africa through partnerships with fintech platforms Chipper Cash, VALR, and Yellow Card.

Trading volumes also skyrocketed: from under $1M in late 2024 to $50M by September 2025 — a 50x increase.

Analysts predict RLUSD's market cap could surpass $1B by the end of 2025, cementing its position as one of the fastest-growing stablecoins in the crypto market.