Ripple introduces Ripple USD (RLUSD), a stablecoin pegged to USD, potentially challenging its volatile XRP token’s role in cross-border payments.
Ripple has launched Ripple USD (RLUSD), a stablecoin pegged 1:1 to the U.S. dollar, aiming to enhance stability in cross-border transactions. The move follows years of volatility for its XRP token, which swung between $3.65 and $1.13 over the past year and traded below $1 for much of 2022-2024.
XRP’s price fluctuations stemmed from a 2020 SEC lawsuit alleging unlicensed securities sales, leading to delistings from major exchanges and lost customers. The case concluded in 2025 with a lighter-than-expected penalty, but Ripple’s pivot to RLUSD may address lingering stability concerns.
Ripple USD could streamline fiat conversions, reducing reliance on XRP as a bridge currency. The stablecoin’s launch reflects Ripple’s shift toward broader financial services, including digital banking, while mitigating regulatory and market risks tied to XRP’s volatility.