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Sohrab Khawas
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- Jul 04, 2025 10:42 UTC
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XRP Still Powers Ripple Despite RLUSD Launch
RLUSD Stablecoin Expands Ripple's Reach Without Replacing XRP: Ripple’s new fiat-backed RLUSD offers institutional utility while XRP remains core.
XRPL EVM Sidechain Boosts XRP Utility: XRP is now the gas token for Ethereum-compatible smart contracts on the XRPL, fueling ecosystem growth.
Crypto analyst Jungle Inc. recently shared his insights on Ripple’s new stablecoin, RLUSD, and its connection to XRP. He clarifies that RLUSD is not here to replace XRP but to complement it, offering new functionality for institutions, while XRP remains central to the ecosystem.
RLUSD: A Stable Fiat Bridge, Not a Replacement for XRP
According to him, RLUSD is not a replacement for XRP. It’s designed to act as a fiat bridge—helping banks and enterprises tap into blockchain tech without dealing with XRP’s price volatility. RLUSD is already live on both the XRP Ledger and Ethereum. It’s regulated by the New York Department of Financial Services and is now being integrated by institutions like Amina Bank and OpenPayd.
Importantly, Ripple is pushing further into the financial system. It has applied for a federal banking charter, and Standard Custody, a Ripple subsidiary that issues RLUSD, already holds a Fed master account.
As of now, RLUSD has a total market cap of $485 million with a 24-hour trading volume of $38.4 million.
Why XRP Still Matters: The XRPL EVM Sidechain
One of the biggest developments for XRP is the launch of the XRPL EVM Sidechain. This allows Ethereum-compatible smart contracts and dApps to run on the XRP Ledger.
Here’s the catch: this EVM chain uses XRP as its gas token, just like Ethereum uses ETH. Every transaction and smart contract interaction will require XRP, directly tying the token to the growing XRPL ecosystem.
Jungle Inc compares it to Ethereum’s setup—USDC is used for stable value, but ETH remains essential for gas. Similarly, RLUSD brings in stable value, the EVM chain empowers developers, and XRP remains the fuel for the system and the bridge for global payments.
What About Low XRP Usage?
The critique that XRP’s usage is still low is also addressed. The expert points out that Ethereum had similar slow adoption in 2016, before smart contracts and DeFi changed the game. The same kind of transformation is now starting for XRP.
Ripple is investing heavily in building out the ecosystem. Between the EVM sidechain, stablecoin support, and institutional integrations, the foundation for long-term growth is being laid.
XRP Market Performance
In the past year, XRP has surged 385.2%, outperforming both Bitcoin and Ethereum. In 2025 so far:
- Q1: +0.45%
- Q2: +7.12%
- Q3 (so far): +2.40%
- Current Price: $2.22
Despite the noise, XRP’s role in the Ripple ecosystem is only growing—now supported by both technical infrastructure and real-world integrations.
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FAQs
RLUSD (Ripple USD) is Ripple’s new stablecoin, pegged 1:1 to the US dollar. It acts as a fiat bridge for institutions to use blockchain technology without XRP’s price volatility. Unlike XRP, which is a bridge currency for global payments, RLUSD provides stable value, similar to how USDC complements ETH.
RLUSD is live on both the XRP Ledger and Ethereum. It’s regulated by the New York Department of Financial Services (NYDFS) and is being integrated by institutions like Amina Bank. As of now, RLUSD has a market cap of $485 million and a 24-hour trading volume of $38.4 million.
Ripple has applied for a federal banking charter in the US, aiming for deeper integration with the traditional financial system. Their subsidiary, Standard Custody (which issues RLUSD), already holds a Fed master account. This move seeks to boost legitimacy and enable faster, cheaper payments, allowing RLUSD reserves to be held directly with the Federal Reserve, enhancing trust.
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