- RLUSD integration boosts Ripple Payments’ cross-border payment efficiency globally.
- Ripple’s RLUSD adoption surpasses $250M in market cap, gaining global traction.
- Binance’s CZ acknowledges Ripple’s role in healthy stablecoin market competition.
Ripple Labs announced that Ripple USD (RLUSD) is now integrated into its flagship payments solution, Ripple Payments. This shift aims to make the USD stablecoin more beneficial for the enterprise, supporting Ripple’s sway in the cross-border payments market.
Besides, integrating RLUSD into Ripple Payments will facilitate payment flows and improve efficiency for financial institutions globally. This is possible as Ripple Payments operations with RLUSD are already processing billions of dollars worth of transactions.
RLUSD’s Role in Cross-Border Payments
RLUSD is an enterprise-grade stablecoin for cross-border transactions. It combines the features of a retail stablecoin with those of a compliant and valuable stablecoin. With years of experience in traditional finance and crypto, Ripple has developed a stablecoin that suits the requirements of enterprises in international payments.
According to an official report, RLUSD’s integration with Ripple Payments will provide faster, cheaper, and scalable cross-border payment processes. It further adds that the stablecoin will expand Ripple Payments’ footprint even more, as they already have around 90 payout markets that boast near-global coverage.
Moreover, RLUSD is intended to be used seamlessly across Ripple’s vast network so businesses can instantaneously settle payments and make cross-border payments more efficient. As of this writing, Ripple already uses RLUSD with its partners BKK Forex and iSend to simplify their cross-border treasury operations.
Additionally, Ripple has a broader strategy that involves expanding the use of RLUSD and making additional services available to global financial institutions.
Market Adoption and Global Availability
Since its launch, RLUSD has seen exceptional adoption, with its market cap close to $250 million and over $10 billion in traded volume. RLUSD is widely available, and Ripple is working with global partners to make it so.
By now, the stablecoin is listed on exchanges like Kraken, LMAX Digital, Bitstamp, and Bullish. This growth is driven by the rising need for a compliant, stable digital asset in the crypto and traditional finance markets.
Moreover, McDonald noted that RLUSD is being leveraged by various financial use cases, such as collateralization in trading markets as well as facilitating transactions for NGOs. Expanding the stablecoin into Ripple Payments further strengthens its global payment ecosystem.
CZ’s Perspective on Stablecoin Competition
Binance’s former CEO, Changpeng Zhao, said Ripple’s latest move ushers in more healthy competition to the stablecoin market. According to CZ, stablecoins have connections to fiat currencies and, as such, will likely see more use of physical currencies.
However, he also said that stablecoins could take some time to replace traditional transactions on a global scale. While aware that stablecoin adoption would continue to grow, Zhao stated that crypto adoption remained below 10% globally.
Yet, with Ripple integrating RLUSD into their payment system and other major players trying to enter the stablecoin market, this marks a massive step forward in developing cross-border payments.
