Ripple’s foray into the stablecoin market with the launch of RLUSD has sparked significant attention in the Decentralized Finance (DeFi) space. However, recent data has raised eyebrows, revealing that nearly 70% of RLUSD’s total supply is issued on Ethereum, rather than Ripple’s own XRP Ledger (XRPL).
According to on-chain data from Arkham, the total supply of RLUSD stands at 294,042,711 tokens. XRPScan data shows that only about 94,405,112 RLUSD tokens, approximately 32% of the total supply, are on the XRP Ledger. The remaining 199,637,599 RLUSD, or around 68%, are hosted on Ethereum, the blockchain that currently dominates the stablecoin market with projects like USDT, USDC, and DAI.
This distribution raises an important question: Why is Ripple’s stablecoin largely hosted on Ethereum, a platform that competes with the XRP Ledger?
Ethereum’s Dominance in DeFi
Ethereum continues to lead the decentralized finance space, offering a robust infrastructure with thousands of decentralized applications (dApps), liquidity pools, and a large user base. By deploying RLUSD on Ethereum, Ripple ensures that the stablecoin is immediately available on established platforms like Uniswap, Aave, Curve, and MakerDAO. This enables users to trade, lend, or stake RLUSD across a broad range of DeFi services, creating more utility for the token.
For developers and institutions seeking liquidity and composability, RLUSD’s presence on Ethereum offers greater opportunities than if it were restricted to the XRPL alone.
Ripple’s Multichain Strategy
Ripple has long championed the concept of a multichain future, one in which crypto assets can move seamlessly across different blockchains, enhancing financial inclusion and efficiency. The deployment of RLUSD on Ethereum aligns with this vision, allowing the stablecoin to tap into existing liquidity pools and expanding its reach beyond the XRP community.
By launching RLUSD on Ethereum, Ripple aims to capture market share in sectors dominated by stablecoins, build credibility within the DeFi space, and demonstrate the coin’s versatility across different ecosystems.
A Strategic Move for Market Penetration
Ripple’s strategy seems clear: by positioning RLUSD as a multichain asset, Ripple ensures that it can engage with a wider range of users, including DeFi enthusiasts, retail investors, and institutions. Ethereum’s established infrastructure provides an ideal starting point for this cross-chain approach.
Looking ahead, RLUSD’s success will depend on user adoption, integration with DeFi protocols, and regulatory clarity. Given Ripple’s strong reputation in enterprise and payments, the launch of RLUSD on Ethereum could significantly boost its credibility and market trust.
The fact that 70% of RLUSD’s supply is hosted on Ethereum signals a broader shift in Ripple’s approach, emphasizing a future where RLUSD is a key player across multiple blockchains rather than confined to the XRP Ledger alone.
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