The RLUSD stablecoin, issued by Ripple, has seen a significant increase in usage since its official launch on December 17, 2024.
According to a CryptoQuant reportsince initial testing in June 2024, RLUSD has processed 33,953 transactions on the XRP Ledgerwhile 1,690 transactions have been recorded on Ethereum.
These data reflect a greater user preference for using Ripple’s native network for operations with this stablecoin, which could be related to its optimized design for said ecosystem.
RLUSD is pegged 1:1 to the US dollar and is backed by cash deposits, US government bonds and cash equivalents. This model ensures the stability and liquidity of the currency, which reinforces its acceptance in regulated markets..
MiCA and USDT exit favor RLUSD
Compliance with the Markets in Cryptoassets (MiCA) regulations in the European Union can be a factor driving RLUSD adoption.
From the end of 2024, MiCA requires that stablecoins listed on centralized exchanges are issued by entities with electronic money licenses and maintain at least two-thirds of their reserves in independent banks, as reported by CriptoNoticias.
The departure of USDT, Tether’s stablecoin, from the European market has created opportunities for alternatives such as RLUSD, which meets the requirements established by regulations.
According to the report, this regulation has favored Ripple’s position as a reliable issuer by European standards.
RLUSD Backup and Potential
The positive impact of RLUSD could also benefit the XRP Ledger’s native asset, XRP. Since transactions on the network require the use of XRP to pay fees, An increase in RLUSD trading volume could translate into higher demand for XRP and therefore in its price.
However, so far this is not happening. In fact, XRP has timidly remained in the range of $2 and $2.6, the maximum in the last 30 days, with a noticeable decline today.
The growth in RLUSD adoption underlines the importance of clear regulations in the cryptocurrency sector and the ability of issuers to adapt to new legal frameworks. With a favorable outlook in Europe and its integration into the XRP Ledger ecosystem, RLUSD could consolidate itself as a relevant option in the global stablecoin market.
