Ripple Labs is extending its US dollar-backed stablecoin RLUSD to Ethereum layer-2 blockchains as part of a pilot program while awaiting regulatory approval for a complete launch next year.
In collaboration with Wormhole, a cross-chain interoperability protocol that facilitates asset movement between various blockchains, the pilot will evaluate RLUSD on Optimism, Base, Ink, and Unichain, as stated by Ripple on Monday.
Originally, RLUSD was launched on the XRP Ledger and Ethereum; however, Ripple indicated that this latest expansion is “crucial for a scalable, efficient, and interoperable future.”
“The future of crypto is undoubtedly multichain, and to effectively serve both institutional finance and the expanding on-chain economy, stablecoins need to be available wherever there is demand and utility.”
“As chains continue to develop for practical use, the demand for a highly regulated stablecoin is stronger than ever,” the Ripple team asserted.
RLUSD will avoid using wrapped copies across blockchains
The Wormhole team announced in an X post on Monday that its Native Token Transfers standard will enable RLUSD to be transferred between blockchains as the actual token, rather than a synthetic or wrapped version, thus aiding liquidity maintenance.
In various multichain scenarios, a token transfer results in the original being locked while a wrapped version is minted on another blockchain.
“With NTT, token issuers eliminate the necessity for fragmented liquidity or wrapped assets, allowing a single, canonical version of RLUSD to exist natively on each blockchain with Ripple holding the contracts,” the Wormhole team added.
More chains are coming next year
RLUSD is set to launch on additional chains next year, although the release is still contingent on final regulatory approval, according to Ripple.
RLUSD is issued under the state-level New York Department of Financial Services Trust Company Charter, while the company has also sought a federal trust bank charter from the Office of the Comptroller of the Currency for added federal oversight.
Jack McDonald, senior vice president of stablecoins at Ripple, stated that stablecoins are the “gateway to DeFi and institutional adoption.”
“By launching RLUSD—the first US Trust Regulated stablecoin on these L2 networks—we are not just expanding utility; we are establishing the definitive standard where compliance and on-chain efficiency converge.”
RLUSD market capitalization sits at $1.3 billion
Launched in December 2024, RLUSD has a market capitalization of $1.3 billion, according to crypto data aggregator CoinGecko.
Related: Ripple’s RLUSD enters top 10 USD stablecoins less than a year after debut
In comparison, the leading stablecoin, Tether’s USDT, boasts a market cap of $186 billion, Circle’s USDC has a market cap of $78 billion, and Sky Protocol’s USDS ranks third with $9.8 billion.
RLUSD has gained popularity among retail users, particularly through integrations with platforms like Transak and increasing adoption across self-custodial wallets, like Xaman.
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