Something unexpected is happening in the stablecoin market. While Ripple, the company behind XRP (XRP-USD), initially branded its new stablecoin, RLUSD, as an “enterprise-focused” tool, it’s now showing strong adoption among retail users. This is a pretty big shift, and it tells us a lot about how digital assets truly find their place in the market.
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RLUSD Breaks through Initial Institutional Walls
Ripple officially launched Ripple USD (RLUSD) in late 2024. CEO Brad Garlinghouse himself highlighted its institutional focus. His aim was to set it apart from other stablecoins that largely target retail users. Ripple’s Chief Technology Officer, David Schwartz, even suggested RLUSD would “probably only ever be available directly to institutions” back in September 2024.
However, things are evolving rapidly. With increased adoption by self-custodial wallets like Xaman and integrations with platforms such as Transak, RLUSD is clearly expanding beyond its initial enterprise scope. As the COO of XRPL Labs and Xaman told Cointelegraph, “While RLUSD may have launched with an enterprise-focused narrative… we’re seeing real traction on the retail side.”
RLUSD Now Competes across All Market Segments
Despite its initial positioning, RLUSD is operating like any other general-purpose stablecoin today. Harshit Gangwar, Transak’s marketing head, confirmed that while RLUSD was “designed with enterprise-grade utility in mind,” its underlying infrastructure supports both institutional and retail access.
Erbil Karaman, co-founder of Huma Finance, states plainly that RLUSD is now directly competing with major rivals like Circle’s (CRCL) USDC (USDC-USD) across all market segments. He points out a crucial lesson: what truly matters isn’t a stablecoin’s initial marketing, but how it actually becomes useful after launch.
Ethereum Holds RLUSD Supply, XRPL Dominates Users
Here’s an interesting paradox in RLUSD’s early adoption. While the majority of RLUSD’s current $557 million market cap, a massive 88%, is issued on the Ethereum blockchain, the vast majority of RLUSD holders are actually on the XRP Ledger (XRPL).
Data from RWA.xyz shows Ethereum-issued RLUSD dominating the supply. However, XRPL Labs’ Kiuru notes that over 90% of RLUSD’s more than 34,160 users are on the XRPL, with only about 10% on Ethereum. This suggests that while Ethereum might be the primary issuance platform for large amounts of RLUSD, the XRP Ledger is proving to be the preferred network for active user engagement and smaller, more frequent transactions.
Kiuru attributes this to the XRPL’s long-standing position as an “enterprise chain” known for its speed, cost-efficiency, and transaction finality. Even with retail adoption soaring, he doesn’t see Ripple’s core strategy for RLUSD or the XRPL moving away from its enterprise focus. Ripple itself has not yet commented on RLUSD’s expanding retail use.
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