Ripple's XRP ETF Hits $1.25 Billion Milestone Amid Stablecoin's Multichain Expansion
Ripple is making significant strides in both its exchange-traded product and stablecoin offerings. The XRP ETF has surpassed $1.25 billion in assets under management, indicating strong institutional interest. Concurrently, Ripple is expanding its U.S. dollar-backed stablecoin, RLUSD, to multiple Ethereum layer-2 networks, aiming to enhance its multichain presence and utility.
Key Takeaways
- XRP ETF assets under management have crossed the $1.25 billion mark.
- Despite ETF inflows, XRP's price action remains range-bound between $1.85 and $1.91.
- Ripple's RLUSD stablecoin is expanding to Ethereum L2s like Optimism and Base via Wormhole.
- The stablecoin expansion aims to embed RLUSD deeper into the multichain ecosystem and support DeFi use cases.
XRP ETF Sees Robust Institutional Demand
The XRP ETF has achieved a significant milestone, crossing $1.25 billion in net assets. This growth is largely driven by institutional investors who are increasingly favoring regulated products for exposure to XRP. Recent inflows of $8.19 million highlight a preference for structured investment vehicles over chasing spot market momentum. This trend aligns with a broader shift among portfolio managers towards products that simplify custody and compliance, especially as regulatory clarity improves and liquidity remains deep.
Despite the strong ETF inflows, XRP's price has remained relatively muted, trading within a tight $1.85 to $1.91 range. Technical analysis suggests strong selling pressure near the $1.90 resistance level and consistent bids around $1.86, indicating a potential for a decisive breakout. Traders are observing this consolidation, with ETF flows acting as a stabilizing force against short-term price fluctuations.
RLUSD Stablecoin Embarks on Multichain Journey
Ripple is strategically expanding the reach of its U.S. dollar-backed stablecoin, RLUSD, to a wider array of blockchains. Initially available on Ethereum and the XRP Ledger, RLUSD will now be accessible on Ethereum layer-2 networks including Optimism, Base, and others, facilitated by Wormhole's Native Token Transfers (NTT) standard. This integration allows for seamless cross-chain transfers without the need for wrapping or synthetic assets, preserving liquidity and regulatory control.
The expansion is designed to embed RLUSD deeper into the multichain ecosystem, catering to decentralized finance (DeFi) use cases that benefit from faster transaction speeds and lower costs. This move is particularly significant as stablecoins are increasingly recognized as crucial infrastructure connecting traditional finance with the crypto economy. RLUSD, issued under a New York Department of Financial Services (NYDFS) Trust Charter, is poised to become the first stablecoin under both state and federal regulatory oversight, following Ripple's recent acquisition of an initial federal trust bank charter from the Office of the Comptroller of the Currency (OCC).
Synergies and Future Outlook
The expansion of RLUSD also includes support for a wrapped version of XRP (wXRP), enabling easier swaps, lending, and payments across supported chains. This integration aims to provide a more cohesive experience for users, allowing them to convert wXRP to RLUSD within DeFi applications on L2 networks without leaving the chain. As Ripple continues to navigate regulatory landscapes and expand its product offerings, these developments signal a commitment to enhancing utility and adoption within the broader digital asset space.