The majority of Ripple's RLUSD Stablecoin supply resides on Ethereum's platform
Ripple's entry into the stablecoin market with RLUSD has been a game-changer for Decentralized Finance (DeFi), but a surprising twist has emerged regarding the distribution of RLUSD - over 70% of the total supply is currently issued on Ethereum, rather than on Ripple's own XRP Ledger (XRPL).
With a total supply of 294,042,711 tokens, as per onchain data, only about 32% of RLUSD, or 94,405,112 tokens, resides on the XRP Ledger. The remainder, approximately 199,637,599 tokens, or 68%, is located on Ethereum, the turf of today's leading stablecoins such as USDT, USDC, and DAI.
This raises an intriguing question: Why is the majority of Ripple's stablecoin taking root on a competitor's ecosystem?
The Ethereum Advantage
Ethereum reigns supreme in the DeFi world with its expansive infrastructure of decentralized applications (dApps), colossal liquidity pools, and widespread user adoption. Launching RLUSD on Ethereum grants immediate access to well-established platforms like Uniswap, Aave, Curve, and MakerDAO, and allows users to trade, lend, or stake RLUSD across numerous decentralized services.
For developers and institutions seeking liquidity and interoperability, this cross-chain deployment makes RLUSD a far more appealing option than if it were restricted to the XRPL alone. In essence, this strategic play enables RLUSD to thrive in the heart of the DeFi landscape, where market momentum lies.
A Visionary Blueprint from Ripple?
Ripple has long advocated for a multichain future, where crypto assets can move freely across various blockchains, leading to broader financial inclusion and enhanced efficiency. Put another way, RLUSD's deployment strategy could be an embodiment of Ripple's long-term vision - to ensure the stablecoin is usable wherever liquidity thrives, not solely within the confines of the XRPL.
By capitalizing heavily on Ethereum, Ripple can stake a claim in existing stablecoin-dominated sectors, earn credibility among DeFi-native users, and showcase RLUSD's practical utility beyond the XRP community. As RLUSD's growth hinges on user adoption, DeFi integration, and regulatory clarity, Ripple's reputation in the enterprise and payments sphere could give it an edge in gaining trust among all stakeholders - retail users, institutions, and developers.
In short, by making the strategic choice to distribute 70% of RLUSD on Ethereum, Ripple seems to be placing a bet on a future where RLUSD plays a pivotal role across multiple chains, not just within its own.
Additional Reading: Oregon AG calls XRP, SOL, ADA securities in Coinbase lawsuit
- Ripple's RLUSD stablecoin, initially intended to disrupt Decentralized Finance (DeFi) with its distribution primarily on the XRP Ledger, has surprisingly seen over 70% of its total supply issued on Ethereum.
- With a large portion of RLUSD residing on Ethereum, Ripple's stablecoin finds itself nestled among leading stablecoins like USDT, USDC, and DAI, leveraging their well-established platforms including Uniswap, Aave, Curve, and MakerDAO.
- This cross-chain strategy grants RLUSD immediate access to significant decentralized liquidity pools, making it a more appealing choice for developers and institutions seeking interoperability.
- Ripple's decision to deploy RLUSD on Ethereum could be a demonstration of their long-term vision for a multichain future, aiming to ensure the stablecoin's usability wherever liquidity thrives, ceasing to be confined within the XRPL alone.
- By positioning RLUSD within the existing stablecoin-dominated sectors, Ripple seeks to earn DeFi-native users' credibility and showcase the stablecoin's utility beyond the XRP community.
- As RLUSD's growth relies heavily on user adoption, DeFi integration, and regulatory clarity, Ripple's established reputation in the enterprise and payments sphere may provide it a competitive edge in building trust among all stakeholders - retail users, institutions, and developers.
