Ripple’s stablecoin, RLUSD, is experiencing significant growth, but its distribution reveals a notable trend: the majority of its supply and institutional activity is occurring on the Ethereum network, while the XRP Ledger (XRPL) is seeing broader user adoption. This dynamic is shaping the token’s utility and its relationship with the native XRP asset.
RLUSD’s Cross-Chain Distribution and Strategy
Since its launch, RLUSD has achieved a market capitalization approaching $800 million, cementing its position as one of the fastest-growing stablecoins of 2025. However, a central aspect of its growth is its cross-chain distribution. Data from DefiLlama and other sources confirm that around 88% of RLUSD’s total supply, worth over $700 million, resides on the Ethereum blockchain. The remaining portion circulates on the XRP Ledger.
This distribution is not accidental. Ripple has strategically anchored RLUSD within Ethereum’s established DeFi ecosystem to tap into its deep liquidity and composability. Major integrations are driving this, such as the partnership with Securitize to enable RLUSD as a payment and redemption mechanism for tokenized funds like BlackRock’s BUIDL and VanEck’s VBILL. Furthermore, availability on leading DeFi protocols like Aave provides immediate utility, allowing users to earn yield or use RLUSD as collateral.
Community Reaction and Strategic Implications
The Ethereum-heavy footprint has sparked a debate within the XRP community, challenging the expectation that Ripple’s products would directly boost XRP’s utility. Many investors anticipated that RLUSD transactions would drive demand for XRP, which is used to pay transaction fees on its native ledger. However, since most activity occurs on Ethereum, which does not use XRP, the direct positive impact on XRP’s tokenomics has been limited.
Despite the supply being on Ethereum, an interesting user trend has emerged. Data suggests that over 90% of RLUSD’s more than 34,000 holders are on the XRP Ledger. This indicates that while large institutional liquidity is on Ethereum, the XRPL is the preferred network for a broader user base, likely due to its speed and low transaction costs. Initially marketed as an enterprise-grade tool, RLUSD has unexpectedly found strong traction among retail users, making it a direct competitor to other general-purpose stablecoins like USDC.
Future Outlook and Evolving Utility
Looking ahead, the balance between the two chains may evolve. The recent launch of the Ethereum Virtual Machine (EVM) sidechain on the XRP Ledger is a key development. It allows developers to build Ethereum-compatible applications on the XRPL, using XRP for gas fees and creating new potential use cases for RLUSD as a liquidity layer. This could eventually attract more activity and liquidity back to the XRP ecosystem.
Ripple’s focus remains on compliance and institutional adoption. Features like “clawback functionality” for regulatory compliance and applications for banking licenses in the U.S. and Europe are designed to make RLUSD a trusted bridge between traditional and decentralized finance.
In summary, RLUSD’s current state is one of strategic positioning. Ripple is leveraging Ethereum’s deep liquidity for institutional adoption while seeing organic, retail-driven user growth on its native XRP Ledger. For product and compliance teams, this means monitoring a dual-track ecosystem where capital is concentrated on Ethereum, but user engagement is vibrant on XRPL.
