Ripple’s RLUSD stablecoin could see wider adoption, as the crypto firm just announced plans to expand it to four Ethereum layer-2 networks, including Coinbase’s Base. This announcement comes just days after the firm gained a conditional approval to become a U.S. trust bank, which gives RLUSD a dual layer of regulation.
Ripple’s RLUSD To Expand To Coinbase’s Layer-2 Base
In a press release, the crypto firm announced that it is taking an important step toward a multichain future with the launch of its stablecoin on layer-2 networks ahead of the official debut next year, pending regulatory approval. Ripple has partnered with Wormhole to begin testing on Base, Optimism, Kraken’s Ink, and Uniswap’s Unichain.
This development follows the OCC’s grant of a conditional approval to Ripple, a move which the company’s CEO Brad Garlinghouse described as a major step forward for RLUSD. Now, the firm is looking to widen the stablecoin’s adoption with this “true Multichain Strategy.”
Furthermore, it is worth mentioning that the stablecoin is currently only available on the Ethereum network and XRP Ledger (XRPL). RLUSD currently has a market cap of just over $1 billion and ranks among the fastest-growing stablecoins based on its year-to-date (YTD) growth.
Meanwhile, Ripple stated that the move to expand RLUSD to L2s is essential for “a scalable, efficient, and interoperable future.” The firm further remarked that leveraging Wormhole’s Native Token Transfers (NTT) standard allows them to maintain native issuance and control the stablecoin while providing the security and flexibility of on-chain liquidity movement across the new ecosystems.
Ripple also highlighted RLUSD’s regulatory edge, which it believes could give it an advantage as more institutions move on-chain. Besides the U.S., the firm has already secured multiple licenses to boost the stablecoin’s adoption, recently securing approval from Abu Dhabi’s FRSA for use across the region’s markets.
Bid To Enhance XRP And RLUSD’s Utility
Ripple stated that it prioritizes issuing RLUSD wherever there is demand for XRP, aiming to strengthen the utility of both assets. It alluded to the HEX Trust’s issuance of wrapped XRP (wXRP) on Solana, a step it noted will make it significantly easier for XRP holders to use the altcoin alongside RLUSD as the primary liquidity pair on supported chains.
The crypto further remarked that the issuance of wrapped XRP on Solana creates new opportunities across the ecosystem, enabling businesses to seamlessly support XRP and RLUSD for services such as payments, swaps, checkout options, and just crypto trading. Hex Trust had mentioned that it plans to issue wXRP on Optimism, Ethereum, HyperEVM, and other chains.
Ripple is aligning with this vision, planning to launch RLUSD on additional chains next year, which would complement XRP’s utility on those chains. The crypto firm noted that the launch of these stablecoins on these other chains will be subject to regulatory approval.
Source: https://coingape.com/xrp-news-ripples-rlusd-expands-to-coinbases-l2-base/