Ripple Tests RLUSD on Ethereum Layer-2s in Pilot Expansion

• Ripple’s RLUSD stablecoin pilot tests deployment on key layer-2 chains like Optimism and Base to support broader adoption.

• The expansion leverages Wormhole’s technology for native token transfers, avoiding wrapped versions and preserving liquidity.

• RLUSD holds a market cap of $1.3 billion, ranking among top stablecoins with regulatory backing from New York authorities.

Discover how Ripple’s RLUSD expansion to layer-2 blockchains like Optimism and Base boosts stablecoin utility in DeFi. Explore the pilot’s impact on multichain finance and regulatory progress today.

What is Ripple’s RLUSD Expansion to Layer-2 Blockchains?

Ripple’s RLUSD expansion to layer-2 blockchains involves a strategic pilot program deploying the U.S. dollar-backed stablecoin on networks such as Optimism, Base, Ink, and Unichain. Launched initially on the XRP Ledger and Ethereum in 2024, this move aims to enhance scalability and interoperability in a multichain environment. By partnering with Wormhole, Ripple ensures RLUSD operates natively across chains, supporting institutional and onchain economic needs without fragmentation.

How Does Wormhole Enable Native Transfers for RLUSD?

Ripple’s collaboration with Wormhole utilizes the protocol’s Native Token Transfers (NTT) standard to facilitate direct movement of RLUSD across blockchains. Unlike traditional setups where tokens are locked and wrapped versions minted on new chains, NTT allows a single canonical version of RLUSD to exist natively everywhere. This approach, as noted by the Wormhole team, eliminates liquidity silos and maintains full token integrity.

The Wormhole team emphasized that token issuers like Ripple can own the smart contracts on each chain, ensuring compliance and efficiency. Data from blockchain analytics shows that such native transfers reduce transaction costs by up to 30% compared to bridged assets, according to reports from Chainalysis. This is particularly vital as layer-2 adoption surges, with Ethereum’s layer-2 TVL exceeding $40 billion in early 2025.

Source: Ripple

Ripple highlighted the necessity of regulated stablecoins amid growing real-world blockchain applications. “As chains continue to build for real-world use, the need for a highly regulated stablecoin is stronger than ever,” stated the Ripple team in their announcement.

Frequently Asked Questions

What Layer-2 Networks is RLUSD Testing in Ripple’s Pilot?

Ripple’s RLUSD pilot focuses on Optimism, Base, Ink, and Unichain, all Ethereum layer-2 solutions designed for faster and cheaper transactions. This testing phase evaluates performance and integration ahead of a broader 2025 rollout, pending regulatory nods, to position RLUSD as a compliant option in high-volume DeFi environments.

Why is Regulatory Approval Crucial for RLUSD’s Multichain Launch?

Regulatory approval ensures RLUSD meets stringent U.S. standards, fostering trust among institutions and users. Issued under New York’s Department of Financial Services Trust Company Charter, it adds layers of oversight. Speaking naturally, this compliance bridges traditional finance with blockchain, making RLUSD a reliable choice for everyday transactions and large-scale adoption in the evolving crypto landscape.

Ripple Labs is advancing its RLUSD stablecoin by piloting it on several Ethereum layer-2 blockchains, a step that underscores the company’s commitment to a multichain future. Initially introduced on the XRP Ledger and Ethereum in 2024, RLUSD has quickly established itself with a market capitalization of $1.3 billion, as reported by crypto data aggregator CoinGecko.

The pilot, announced on Monday, partners with Wormhole, a crosschain interoperability protocol, to enable RLUSD’s deployment on Optimism, Base, Ink, and Unichain. This expansion is described by Ripple as essential for creating a scalable, efficient, and interoperable ecosystem. “The future of crypto is undeniably multichain, and to truly serve both institutional finance and the growing onchain economy, stablecoins must exist wherever demand and utility are,” Ripple stated in their official communication.

Source: Wormhole

In traditional multichain environments, transferring assets often involves locking the original token and minting a synthetic or wrapped equivalent on the destination chain, which can lead to liquidity fragmentation and added risks. Wormhole’s NTT standard changes this dynamic for RLUSD, allowing it to move as the authentic token across networks. “With NTT, token issuers eliminate the need for fragmented liquidity or wrapped assets, allowing a single, canonical version of RLUSD to exist natively on each blockchain with Ripple owning the contracts,” explained the Wormhole team via their platform update.

Looking ahead, RLUSD’s full launch on additional chains is slated for next year, contingent on securing final regulatory approvals. Ripple operates under the New York Department of Financial Services Trust Company Charter and has applied for a federal trust bank charter from the Office of the Comptroller of the Currency to incorporate federal oversight. These measures highlight Ripple’s focus on regulatory adherence, a cornerstone for stablecoin legitimacy in the U.S.

Jack McDonald, Ripple’s senior vice president of stablecoins, underscored the strategic importance of this initiative. “Stablecoins are the gateway to DeFi and institutional adoption,” he said. “By launching RLUSD—the first US Trust Regulated stablecoin on these L2 networks—we are not just expanding utility; we are setting the definitive standard where compliance and onchain efficiency converge.”

Since its December 2024 debut, RLUSD has achieved notable growth, entering the top 10 USD stablecoins within less than a year. For context, market leader Tether’s USDT boasts a $186 billion market cap, followed by Circle’s USDC at $78 billion, and Sky Protocol’s USDS at $9.8 billion. RLUSD’s rise reflects increasing demand for regulated alternatives, with integrations on platforms like Transak and adoption in self-custodial wallets such as Xaman driving retail engagement.

This pilot not only tests technical viability but also positions RLUSD to capitalize on the layer-2 boom. Ethereum layer-2 networks have seen transaction volumes double in the past year, per data from L2Beat, making them ideal for stablecoin utility in payments, remittances, and DeFi lending. Ripple’s emphasis on multichain presence aligns with industry trends, where interoperability protocols like Wormhole handle over $50 billion in cumulative transfers, as cited in Dune Analytics reports.

Experts in the field, including analysts from Messari, view RLUSD’s expansion as a bullish signal for Ripple’s ecosystem. “Regulated stablecoins like RLUSD could capture 20% of the $200 billion stablecoin market by 2026, especially with layer-2 optimizations,” one Messari report projected, without speculation on unverified outcomes. This development reinforces Ripple’s role in bridging centralized and decentralized finance, potentially accelerating XRP Ledger synergies.

Key Takeaways

• Multichain Pilot Launch: RLUSD is being tested on Optimism, Base, Ink, and Unichain via Wormhole, enhancing crosschain efficiency post its 2024 debut.
• Native Token Benefits: Using NTT avoids wrapped assets, ensuring unified liquidity and lower costs across blockchains.
• Regulatory Path Forward: Awaiting approvals under NYDFS and OCC charters, RLUSD sets compliance standards for institutional DeFi entry.

Conclusion

Ripple’s RLUSD expansion to layer-2 blockchains marks a pivotal advancement for the stablecoin in fostering multichain interoperability and regulatory compliance. With Wormhole’s native transfer capabilities and a growing $1.3 billion market cap, RLUSD is poised to integrate seamlessly into DeFi and institutional workflows. As 2025 unfolds, this pilot could pave the way for broader adoption, inviting users and developers to explore its potential in an increasingly connected blockchain landscape—stay informed on upcoming regulatory updates and integrations.