Stablecoins like RLUSD have become essential tokens in crypto, now helping to bridge traditional finance with web3.
USDC from Circle and Tether’s USDT are the leaders in the stablecoin realm; however, Ripple has entered the arena with Ripple USD (RLUSD), a stablecoin designed to combine institutional trust, compliance, and bring new liquidity.
Given Ripple’s deep banking relationships and regulatory positioning, RLUSD could emerge as one of the most dominant stablecoins in the near future. Here’s how.
Ripple’s greatest advantage lies in its long-established connections with global banks and regulators. Ripple already works with financial giants like Santander, Bank of America, and SBI Holdings in Asia. This networking provides a ready-made ecosystem for RLUSD adoption.
Whereas USDC grew quickly by serving crypto-natives and DeFi protocols, Ripple’s strategy is clearly institutional-first.
RLUSD will, over time, be integrated into more payment systems and gain acsess to wider liquidity options.
After acquiring Hidden Road, a credit network platform for institutions, Ripple integrated the RLUSD token. The result of RLUSD integrations in institutional spaces will boost the tokens’ use cases, liquidity, and market capitalization over time.
One of the major challenges facing stablecoins is regulation. Governments worldwide want assurances that stablecoin issuers are properly audited and backed by high-quality reserves.
Ripple has long made regulatory compliance a key part of its identity. Its settlement with the SEC over XRP’s status allows the XRP token to now be issued as a Spot ETF, while ecosystem-related tokens like RLUSD have more room to breathe.
Because of this history, RLUSD could benefit from being seen as a bank-grade stablecoin, particularly when compared with competitors who have faced transparency questions, looking as Tether’s USDT.
To combat regulator scrutiny, Tether has launched USAT, led by former US crypto advisor Bo Hines. USAT may be a strong competitor to RLUSD, but Ripple’s clean history and US government trust may help it overcome potential competitors.
USDC currently holds a $74B market capitalization and is a top 7 token in crypto’s global markets. Compared to RLUSD’s $741M market cap, there is much work to be done for Ripple to catch up.
On DeFi, RLUSD wouldn’t need to take over the market to become one of the leading stablecoins. Instead, RLUSD can thrive in areas where Ripple already has an advantage, such as cross-border payments and tokenized asset markets.
If Ripple positions RLUSD as the go-to stablecoin for certain international payments or liquidity incentives, the two could co-exist as leaders in different niches.
With global stablecoin regulation expected to mature between 2026 and 2027, RLUSD could gain significant traction for Ripple.
Ripple’s existing partners are likely to pilot RLUSD in cross-border transactions and tokenized finance solutions before broader rollouts begin in the regulatory sense.
SBI Holdings has vowed to integrate the RLUSD token for Japanese financial institions by Q1 2026. By the end of 2026, RLUSD could rival USDC as one of the top two most-used stablecoins.
As crypto traders know, stablecoins are no longer just a way to cash out of DeFi protocols, but are now becoming new alternative, digital currencies for finance.
Ripple’s RLUSD, supported by decades of banking connections and institutional trust, has the potential to rise as a dominant stablecoin alongside USDC.
The post Could Ripple’s RLUSD Become the Next Dominant Stablecoin? first appeared on AllinCrypto.
Also read: Ripple News: RLUSD Positioned as Institutional Bridge Between Wall Street and Crypto
