Ripple Expands RLUSD Stablecoin to Ethereum L2 Networks
- Ripple’s expansion of RLUSD to Ethereum L2s boosts multichain interoperability.
- Using Wormhole facilitates seamless cross-chain transfers for RLUSD.
- Aims to enhance DeFi adoption and liquidity efficiency on L2 networks.
Ripple has announced the expansion of its $1.3 billion RLUSD stablecoin to Ethereum Layer 2 solutions using Wormhole’s Native Token Transfers, enhancing cross-chain interoperability.
This integration could accelerate RLUSD adoption, positioning Ripple competitively in stablecoin markets against USDC and USDT while offering faster, more cost-effective DeFi solutions.
Ripple is expanding its RLUSD stablecoin to Ethereum L2s using Wormhole. The move enhances multichain interoperability, benefiting from Wormhole’s Native Token Transfers (NTT) for seamless cross-chain capabilities.
Primary entities Ripple and Wormhole drive this initiative, focusing on Optimism, Base, Ink, and Unichain. Stablecoins are the gateway to DeFi and institutional adoption, and RLUSD is designed from the ground up to be the trusted, liquid medium necessary for users to seamlessly enter, interact with, and exit the entire digital asset economy. By launching RLUSD—the first US Trust Regulated stablecoin on these L2 networks—we are not just expanding utility; we are setting the definitive standard where compliance and on-chain efficiency converge,” stated Jack McDonald, SVP of Stablecoin at Ripple. Stablecoins are critical for DeFi adoption, enhancing liquidity and entry into digital asset markets.
The expansion directly impacts financial markets by providing lower-cost, faster transaction options. It targets the existing spaces dominated by USDC and USDT, thereby increasing competition in the stablecoin market.
Ripple aims to establish RLUSD as a standard in stablecoin compliance and on-chain efficiency, offering regulatory security through a NYDFS Trust Charter and awaiting OCC federal charter approval.
This strategic move positions RLUSD for greater institutional presence in DeFi ecosystems. As RLUSD integrates, it strengthens regulatory and liquidity controls, mirroring recent stablecoin market trends towards enhanced security and multichain capabilities.
