Ripple’s dollar-backed crypto stablecoin, RLUSD, is significantly deepening its roots in the decentralized finance (DeFi) sector through its latest integration with Aave. This strategic move aims to increase the stablecoin’s utility and accessibility within the burgeoning DeFi ecosystem.
An official statement confirmed on April 22 that users of the Aave protocol can now utilize RLUSD for both supply and borrow functions. The initial parameters allow for a $50 million lending pool and a $5 million borrowing pool, providing substantial liquidity for users engaging with the stablecoin on the platform.
Integrating with Aave marks a considerable milestone for RLUSD’s adoption journey. Aave stands as the premier decentralized lending platform measured by total value locked (TVL), demonstrating substantial reach and user trust. The protocol’s multi-chain presence across 16 blockchains, including Ethereum, Base, Optimism, and Arbitrum, further broadens RLUSD’s potential user base.
This DeFi expansion follows closely on another key development: Ripple’s acquisition of the non-bank prime broker Hidden Road. As part of this deal, Hidden Road intends to leverage RLUSD for collateral purposes and utilize the XRP Ledger for post-trade settlements. This dual approach highlights Ripple’s strategy to embed RLUSD across both DeFi and institutional financial frameworks.
Backed by regulatory approval from the New York State Department of Financial Services, RLUSD positions itself as an enterprise-grade stablecoin. It combines the perceived stability of fiat currency with the inherent efficiency of blockchain technology, targeting use cases from global payments and seamless crypto on/off ramping to the expanding market for tokenized real-world assets.
Since launching late last year, RLUSD has consistently expanded its footprint. The stablecoin is now listed on several major exchanges, including Uphold, MoonPay, CoinMENA, ArchaxEx, Bitso, and most recently, Kraken. Its market capitalization currently stands at $294 million, placing it as the 12th largest stablecoin by market value, notably surpassing EURC.