Ripple Labs’ RLUSD stablecoin achieves new milestone
Ripple Labs’ RLUSD stablecoin has achieved a new milestone, launching on the Aave V3 Core Market. Consequently, users can supply and borrow RLUSD directly on Aave, one of the world’s leading DeFi lending protocols. The launch comes with a supply cap of $50 million and a borrowing cap of $5 million. This reflects a cautious but optimistic approach to initial liquidity and risk management.
Ripple Expands DeFi Ambitions
By debuting RLUSD on Aave, Ripple aims to unlock real liquidity, marking its expansion in the Decentralized Finance (DeFi) space. It opens the door for broader RLUSD adoption within the crypto ecosystem. Leveraging Aave’s decentralized, non-custodial infrastructure, retail and institutional users can now supply RLUSD to earn interest or borrow the stablecoin against collateral.
Image Source: AlvaApp on X
The utilization rate is currently at 0%, as no borrowing activity has occurred. Despite the quiet beginning, the Total Value Locked (TVL) and volume surged, indicating RLUSD’s growing interest. Community members praised RLUSD’s potential to diversify away from top stablecoins like Tether (USDT) and USD Coin (USDC). Some traders anticipate short-term yield opportunities, which are typical of new pools launched on Aave. Analysts believe RLUSD could attract more users in the coming weeks. They expect inflows of additional liquidity incentives and interest structures to fuel this move.
Market data shows RLUSD’s price remains firmly pegged at $1, reaffirming its stability and reliability as a dollar-backed asset. Within 24 hours, RLUSD’s trading volume surged over 92% to $33.36 million. RLUSD has achieved more than $10 billion in total volume transactions since it launched in December 2024. Experts believe that RLUSD has exceeded expectations so far. As outlined in our recent blog post, RLUSD’s circulating supply has surpassed $160 million, showing rapid adoption across Ethereum and XRPL networks. Meanwhile, Ripple recently issued $100 million worth of RLUSD in two days as demand for the stablecoin skyrocketed.
The Bigger Picture
The RLUSD stablecoin is part of Ripple’s big strategy to boost enterprise-level efficiency. Unlike many other stablecoins targeted at consumers, RLUSD is primarily designed for business use. As detailed in our last news piece, Ripple has integrated RLUSD into its cross-border payments platform, Ripple Payments. Through this integration, Ripple aims to provide businesses with a reliable and efficient method for cross-border payments. Early adopters such as BKK Forex and iSend gave positive reviews after integrating RLUSD into their cross-border transaction processes.
RLUSD has also integrated with advanced trading platforms like Bitstamp, Kraken, LMAX Digital, Zero Hash, and Bullish. These listings allow retail and institutional users to transact conveniently in RLUSD via several financial market platforms. Ripple plans to integrate RLUSD into more decentralized and centralized applications. The goal is to expand the stablecoin’s use case beyond payments and into lending, trading, and DeFi services.