Ripple’s stablecoin, RLUSD, has surpassed a $100 million market capitalization just over a month after its launch. Jack McDonald, Senior Vice President of Stablecoins at Ripple, confirmed the milestone and reiterated the company’s commitment to transparency, regulatory compliance, and financial stability.
Ripple has pledged to publish independent monthly attestations verifying the stablecoin’s reserves and compliance with the highest regulatory standards. The move aligns with the company’s strategy to build trust and credibility as RLUSD expands across global trading platforms.
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RLUSD’s Over-Reserving Strategy Enhances Market Confidence
McDonald explained that RLUSD functions through an over-reserved model, enabling its reserves to exceed the entire circulating stock. Ripple declares that RLUSD stablecoin obtains support through equal portions of United States dollar deposits and short-term U.S. government securities and cash-equivalent assets.
The company keeps a value larger than 100% of the RLUSD supply in reserve to ensure financial security. Ripple currently possesses an excess of $6 million in RLUSD reserve assets compared to the amount outstanding.
All cash transactions at the company happen smoothly due to its choice of low-risk liquid assets, which allows for the efficient handling of redemption requests. The over-collateralization model exists to make RLUSD into a dependable and secure stablecoin.
Expanding Market Reach and Exchange Listings
RLUSD stablecoin has received continued platform integration from Ripple, and now users can access it through Bitstamp Exchange alongside Bitso and Bullish Exchange. Ripple President Monica Long indicated that RLUSD will appear on additional exchanges to expand its market availability and penetration rate.
Despite RLUSD’s early momentum, it remains significantly smaller than market leaders Tether (USDT) and Circle’s USDC. Tether currently holds a market capitalization of nearly $139.43 billion, while USDC is approximately $53.45 billion as per the data from CoinMarketCap.
However, Ripple’s focus on regulatory transparency and asset-backed stability may drive RLUSD’s adoption in institutional markets looking for compliant stablecoin solutions.
Conclusion
The rapid growth of RLUSD demonstrates increasing interest in stablecoins backed by regulated financial reserves. Ripple’s emphasis on transparency, over-reserving, and liquidity management positions RLUSD as a potential competitor in the expanding digital asset market, strengthening its credibility and appeal.
As the stablecoin gains further exchange listings and adoption, its role in the broader crypto ecosystem is expected to grow.
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