RLUSD, Ripple’s dollar-backed stablecoin, has climbed to a record market capitalization above $1.38B as institutional integrations accelerate. The move reflects a strategic push into regulated liquidity rails and broker networks that have broadened RLUSD’s use for settlement and tokenized funds, while XRP’s on‑chain activity remains subdued.
RLUSD’s ascent is tied to a string of enterprise-focused deals and regulatory clearances. A $150M investment linking RLUSD into LMAX Group’s trading infrastructure positioned the stablecoin as usable collateral across a major institutional engine, improving cross‑asset margin efficiency and liquidity.
Market participants also noted integrations with tokenization platforms and mainstream brokers that expanded RLUSD’s off‑ramp and funding use cases. These corporate and compliance moves were paired with multiple jurisdictional approvals and custody arrangements—steps that institutional treasuries prize for operational and legal certainty.
Despite broader Ripple ecosystem expansion, XRP’s network metrics lag behind the stablecoin’s institutional momentum. Data in the same reporting indicated that nearly 76% of RLUSD supply resides on Ethereum, unlocking DeFi liquidity but limiting direct usage that would generate transaction-based burns on the XRP Ledger. At the same time, XRP showed declining decentralized exchange volumes and historically low exchange reserves—signs of weak network activity even as institutional products directed capital into the ecosystem.
Analysts cited the difference in product role: institutions prioritise a fiat‑pegged, low‑volatility instrument for settlement and treasury operations. XRP, as a volatile bridge asset, plays a secondary role in those strategies despite inflows into XRP exchange‑traded funds and recent regulatory clarity around Ripple’s legal position.
Institutional integrations power the RLUSD rally
For traders and crypto treasuries, the divergence matters operationally. RLUSD offers predictable settlement mechanics and custody footprints that can reduce balance‑sheet volatility for tokenized fund operations and broker integrations. That predictability has a direct effect on trading desks and RWA tokenization flows where margin and funding stability matter.
Conversely, XRP’s weaker on‑chain usage raises execution and liquidity risks if institutions expected the token to serve as the principal settlement leg. Treasury teams should weigh counterparty and network liquidity when allocating settlement balances, and trading desks must monitor DEX flows and exchange reserves for sudden changes in slippage and funding costs.
Investors and market operators will watch whether continued broker and platform integrations keep institutional demand concentrated in RLUSD, and whether XRP’s network activity rebounds enough to justify a larger role in settlement use cases.
