For the first time ever, the supply of Ripple’s US dollar-backed stablecoin, RLUSD, on the XRP Ledger (XRPL) has overtaken that on Ethereum. The total RLUSD circulating on XRPL has reached $801 million, edging ahead of Ethereum’s $795 million supply. This shift marks a significant development in the competitive landscape of stablecoins and highlights an evolving dynamic within the sector.
Changing landscape in stablecoin supply
Observers note that the rise in RLUSD on XRPL is not merely a numerical difference between two major blockchains, but signals a broader transformation in stablecoin adoption. RLUSD, designed as a dollar-backed stablecoin within the Ripple ecosystem, distinguishes itself with its emphasis on regulatory compliance and an institutional use case focus. According to sector data, RLUSD has also been recognized as the first US dollar-backed stablecoin regulated in Japan, further bolstering its credentials.
With RLUSD supply on XRPL reaching $801 million and surpassing Ethereum’s $795 million level, market participants interpret this as a signal of a possible shift in institutional stablecoin preferences.
Because RLUSD is issued directly on the XRP Ledger, institutions integrating this asset inherently connect their systems to the XRPL infrastructure. This creates a compelling network effect, making it easier for organizations already on XRPL to explore and deploy other XRP Ledger-based assets and services in the future.
Expanding institutional applications
The rising interest in RLUSD is driven by strong institutional demand from banks, payment service providers, custody firms, and exchanges, who are seeking a reliable, regulated digital dollar platform. This demand is underpinned by RLUSD’s technical architecture, specifically tailored for compliance and robust institutional use.
Mini glossary: A custody firm is a financial institution that provides secure storage and protection of digital assets on behalf of institutional clients. Tokenization refers to creating a digital representation of a traditional asset on a blockchain.
Developments behind the scenes are viewed as having an impact beyond increasing network liquidity. Observers point out that RLUSD has accelerated adoption in areas such as payments, tokenization, and real-world asset integration, prompting major exchanges and financial service providers to step up their XRPL integrations.
A new reality challenging Ethereum’s dominance
For years, Ethereum has been the dominant blockchain for token issuance, supported by its ERC-20 ecosystem’s extensive integrations with exchanges, custody solutions, and institutions. This made Ethereum the preferred choice for institutional projects seeking broad compatibility and support.
However, the fact that XRP Ledger now hosts a larger RLUSD supply than Ethereum suggests that institutional attention may be gradually shifting. Large institutions are known for conducting thorough compliance reviews and technical evaluations before adopting emerging infrastructures; RLUSD appears to be a catalyst for accelerating this transition.
Should this trend continue, it is believed RLUSD could help position the XRP Ledger beyond a payments-focused network, elevating it to a more central role in the digital asset industry for institutional-grade use cases.
