Ripple Increases RLUSD Supply by 28M, Challenging USDT

Ripple has made waves once again by minting a significant amount of RLUSD stablecoins. The company recently minted 28 million RLUSD tokens, growing the supply and raising curiosity about its potential impact on the stablecoin market. While giants like USDT and USDC dominate the scene, Ripple’s move signals its ambition to carve out a space for itself in the world of stablecoins and boost XRP Ledger utility.

A Growing Stablecoin Player

Ripple’s minting of 28 million RLUSD tokens marks a key moment in the company’s plans to establish a stablecoin that can rival the likes of USDT. It has been gaining traction ever since it was launched in December after securing regulatory approval. Backed 1:1 by U.S. dollars or equivalent assets, it aims to provide stability and reliability to users handling digital payments and remittances, particularly on the XRP Ledger. As of the latest update, the token’s market capitalization stands at $169.69 million, and the supply has more than doubled in less than two months.

While Ripple’s stablecoin is still in its early stages, the move indicates its clear intent to increase liquidity, drive adoption, and integrate RLUSD into its broader payment ecosystem.

Currently available on both Ethereum and the XRP Ledger, RLUSD’s presence on the latter is still growing. As of now, Ripple has minted 44 million RLUSD on the XRP Ledger, while the vast majority (around 125 million) are on Ethereum. There’s speculation that Ripple will expand to additional chains in the future, further increasing the coin's availability across different ecosystems.

Can Ripple’s Stablecoin Compete with USDT?

Ripple’s entry into the stablecoin market could change the landscape of cross-border payments. While the stablecoin space is currently dominated by titans like USDT and USDC, Ripple’s RLUSD has the potential to carve out its own niche. This move aligns with Ripple’s ongoing efforts to strengthen its position in cross-border payments and the broader financial ecosystem. With RLUSD, Ripple hopes to offer a homegrown alternative that is optimized for seamless on-chain transactions.

But the big question is: Could RLUSD challenge USDT's dominance? Circle’s USDC, the second-largest stablecoin by market cap, currently holds a massive $58.8 billion market cap. While RLUSD is still a relatively small player, its minting activity suggests it could be positioning itself for a more significant role in the future. If Ripple can integrate RLUSD effectively into the XRP Ledger, it could lead to wider adoption and attract institutional investors looking for a stable, trusted asset.

Speculation and Future Potential

Ripple’s minting of an additional 28 million RLUSD tokens has sparked speculation in the crypto community. Many XRP holders and analysts are wondering if this could lead to a major listing or announcement. Some are hopeful that RLUSD could open up new use cases for Ripple’s payment system, while others question the timing, especially given Ripple's ongoing battle with the U.S. SEC.

With growing interest in Central Bank Digital Currencies (CBDCs) and tokenized real-world assets (RWAs), RLUSD could help bridge traditional finance and blockchain technology. Ripple seems focused on offering a safer, more efficient way to make transactions without relying on third-party assets.

SBI VC Trade, a longtime Ripple partner, could also play a key role in RLUSD’s future. While SBI is currently focused on USDC, it’s unclear if or when they will consider RLUSD. For now, RLUSD doesn’t have the liquidity, but there’s potential for SBI to explore multiple stablecoins as the market for stable assets grows. It’s something worth keeping an eye on, especially as Ripple continues to strengthen its position in the global payments landscape.

While it’s still unclear when RLUSD will be fully integrated into Ripple’s ecosystem for public or institutional use, Ripple’s latest minting move is a sign that the company is not slowing down. As the market continues to demand stable, trusted digital assets, Ripple’s entry into the stablecoin space could ultimately offer more options for users and developers looking for security and stability in an increasingly volatile crypto market.