Ripple’s RLUSD stablecoin may hold firm in the long run

Key takeaways

RLUSD has witnessed a drop in trading activity, prompting concerns about its adoption and relevance
Analysts believe the decline in activity may be short-term, as the coin is backed by sound vision and technology
Launched in December 2024, RLUSD is fully backed by U.S. dollar reserves and is designed to meet institutional compliance standards
The stablecoin is already integrated across major exchanges and platforms, supporting use cases such as cross-border payments, real-world asset collateralization, and multi-asset trading
Ripple is actively working to expand RLUSD’s footprint via new exchange listings, non-governmental organization (NGO) collaborations, and real-world applications. Company executives stress that RLUSD is built for long-term utility in regulated digital finance, rather than short-term market fluctuations

Ripple’s US dollar-backed stablecoin, RLUSD, faced an unexpected dip in trading volume in mid-May 2025 — a surprising development given the broader crypto market rally. While Bitcoin and Ethereum ride renewed investor confidence, RLUSD’s shrinking activity is raising some questions about its adoption and future role in the ecosystem.

Volume Drops, Not the Price

RLUSD remains largely stable at $0.9992, closely pegged to the US dollar. However, it’s the falling trading volume, not price, that has caught analysts’ attention. With a market cap hovering around $312 million, concerns are emerging over RLUSD’s liquidity and real-world utility in an already crowded stablecoin space led by Tether (USDT) and USD Coin (USDC).

“This might just be capital flowing into higher-yield tokens like XRP,” said one analyst. “Or it could indicate that RLUSD hasn’t proven its use case yet.”

Stablecoin Stumbles Aren’t Common

Stablecoins serve as the backbone of crypto trading and DeFi, offering consistency amid volatility. A decline in usage during a bull run is unusual — and potentially troubling. RLUSD’s slump comes just months after Ripple launched it in December 2024, positioning it as a compliant, institution-ready digital dollar.

Ripple’s Vision and Institutional Focus

Unlike many short-lived stablecoin projects, RLUSD was built with regulation and transparency in mind. Fully backed by USD reserves and cash equivalents, Ripple publishes monthly third-party audits to prove solvency. Security features like MultiSign minting and sanctions-compliant freezing also set it apart.

“RLUSD is meant to serve institutions needing a compliant settlement layer,” said Ripple President Monica Long.

Ecosystem Support and Use Cases

RLUSD is already listed on major platforms including Kraken, Bitstamp, LMAX Digital, and Gemini. It’s used in cross-border remittances and as collateral in tokenized real-world asset (RWA) markets. Its integration with Ripple-owned Hidden Road allows the coin to be used in complex multi-asset strategies across forex, derivatives, and digital assets.

Ripple has also equipped RLUSD for DeFi and cross-chain use, launching on both Ethereum and the XRP Ledger with plans to expand to Solana and Avalanche.

Facing Heavyweights in a Crowded Market

Despite its infrastructure and compliance focus, RLUSD faces steep competition. Market leaders like Tether and USDC enjoy deep liquidity, established user bases, and wide adoption.

“RLUSD is late to the party,” said Bloomberg Intelligence analyst James Seyffart. “But Ripple has the tech and institutional clout. It’s all about how fast they can scale.”

Ripple’s Roadmap: Eyes on the Long Game

Ripple isn’t backing down. SVP of Stablecoins Jack McDonald confirmed the company is pursuing more exchange listings and exploring NGO partnerships for humanitarian aid and liquidity services.

CEO Brad Garlinghouse emphasized that RLUSD is a long-term play. “As U.S. regulations become clearer, demand for compliant stablecoins will grow,” he said.

The Road Ahead

The drop in volume could be a temporary blip or a warning sign. Either way, the coming months will be critical for Ripple to prove RLUSD’s relevance. Success will hinge on driving adoption, boosting liquidity, and delivering on real-world use.

With regulatory clarity approaching and digital dollars gaining traction, Ripple must now show that RLUSD is more than a niche player — it’s a cornerstone of the next financial era.