Ripple RLUSD stablecoin supply tops $2.4 billion as XRP Ledger expands DeFi features

The XRP Ledger, originally launched by Ripple to enable fast value transfers, is undergoing a significant transformation driven by three new developments: the issuance of the RLUSD stablecoin, the programmability of XRP through FXRP, and the forthcoming expansion of onchain lending capabilities.

Stablecoin Settlement Expands on XRP Ledger

Ripple has reported that RLUSD, the stablecoin issued on both Ethereum and the XRP Ledger (XRPL), has reached approximately $2.4 billion in circulation. As of September 3, the supply is reportedly backed by $2.52 billion in reserve assets, according to Ripple’s latest transparency disclosures.

Unlike XRP, which has experienced notable price volatility, RLUSD introduces a settlement token tied to the US dollar. This new option allows institutions to transfer value and settle transactions on-chain while minimizing exposure to market swings.

Ripple has deployed RLUSD on both Ethereum and XRPL, enabling liquidity to move across networks and building interoperability. Data from Coinpaper illustrates how RLUSD supply can be distributed dynamically between the two chains, showing that Ripple’s approach is multi-ecosystem rather than exclusive to XRPL.

Ripple maintains RLUSD reserves above circulating supply, supporting stable value transfer for payments, tokenized assets, and future credit markets on-chain.

Despite these developments, XRP continues as the native currency for transaction fees and reserve requirements on the XRP Ledger.

FXRP: Unlocking Programmable Use Cases for XRP

Flare Network, a blockchain focused on data-driven smart contracts, has enabled new utility for XRP holders through FXRP. According to Flare’s latest updates, approximately 145.2 million FXRP tokens have been created, with 130 million currently deployed across decentralized finance (DeFi) platforms. An additional 21 million FXRP has been bridged to external chains using LayerZero infrastructure.

FXRP is not a native asset on the XRP Ledger; rather, it is issued on Flare and other connected networks. The underlying XRP collateral, however, stays on XRPL while Flare’s system manages its corresponding FXRP supply.

Recent analysis of FXRP usage shows nearly 90% of its supply is active in DeFi strategies such as lending, collateralization, and vault services.

FXRP enables XRP to participate in smart contracts and DeFi without leaving the XRP Ledger, enhancing programmability and ecosystem interaction.

This approach allows XRP to benefit from programmable features without compromising XRPL network integrity or control over the underlying asset.

Mini dictionary: Flare Network is an EVM-compatible blockchain designed to enable trustless interoperability and real-world data integration for smart contracts, expanding asset programmability beyond their native chains.

Native Lending Protocol Nears XRPL Mainnet

Enhancements to the XRP Ledger continue with the 3.4.0 release, which introduces the codebase for LendingProtocolV1_1. This protocol includes closed-ended vaults, single-asset funding, and cash-basis accounting, reflecting a more institutional approach to onchain credit.

The system is designed for fixed-term, uncollateralized lending, with borrower risk assessment provided externally, rather than by the protocol itself. While this new lending functionality awaits full activation, it marks a step toward bringing credit operations directly on-chain with XRP Ledger infrastructure.

Ripple, along with partners such as Clearpool and Cicada, is already working to develop institutional credit markets utilizing RLUSD stablecoin, setting a foundation for future capital market activities around the XRPL ecosystem.

LendingProtocolV1_1 still needs to complete the XRP Ledger’s governance process before it becomes operational on the main network. Observers note that these developments do not replace XRP’s original payment use case, but instead increase the diversity of financial activity anchored on the ledger.