Ripple’s USD-pegged stablecoin, RLUSD, closed Q1 2025 with a combined market capitalization of $244.2 million across the XRP Ledger (XRPL) and Ethereum.

On XRPL alone, RLUSD reached a market cap of $44.2 million, making it the largest stablecoin on the network, according to the latest report by Messari. Due this growth, the total market cap of fungible tokens, known as Issued Currencies, surged by 6.5% QoQ to $281.5 million.

RLUSD Stablecoin: Q1 2025

Despite this milestone, stablecoin adoption on XRPL remains limited compared to dominant stablecoins like Tether (USDT) and USD Coin (USDC), which ended Q1 with total market caps of $144.0 billion and $60.1 billion, respectively, across all supported networks.

Historically, the introduction of a trusted stablecoin in a new execution environment has triggered major liquidity events, as seen with Cardanos iUSD in 2023, often serving as a key pairing asset in automated market makers (AMMs).

Until recently, regulatorily compliant tokens like RLUSD, which feature Clawback a mechanism on XRPL that lets issuers retrieve distributed tokens were not compatible with the networks automated market maker (AMM) due to the lack of Clawback support. This changed in January when the AMM Clawback amendment was implemented, allowing such tokens to be traded on the AMM.

The update is expected to boost AMM activity as more compliant assets launch on XRPL. Potential applications include enabling on-chain trading of previously illiquid real-world assets (RWAs), earning yields through AMM participation, and cross-chain price arbitrage.

Adoption Curve

RLUSD launched publicly on December 17, 2024, on both XRPL and Ethereum. It is fully backed by US dollar deposits, short-term US Treasuries, and other cash equivalents, with monthly attestations provided by third-party firms. In January, Ripple announced the integration of Chainlink Price Feeds on Ethereum to provide RLUSD pricing data.

In April, RLUSD was added to Ripples cross-border payment platform, Ripple Payments, while Kraken launched trading support. Additional Q1 listings came from LMAX Group, Zero Hash, and Bitstamp, joining Uphold, Bitso, MoonPay, Archax, CoinMENA, Independent Reserve, and Bullish.

Further boosting infrastructure around RLUSD, Korean custody provider BDACS signed a strategic partnership with Ripple in February to offer custody services for XRP, RLUSD, and other digital assets.