Rise in Retail Adoption of Ripple's RLUSD Stablecoin Initially Marketed for Enterprise Use

Ripple USD (RLUSD) stablecoin attains growing prominence among retail users

Recent information suggests Ripple USD (RLUSD), a stablecoin issued by XRP coin issuer Ripple, is steadily gaining traction among retail users. In parallel with its effectiveness and adoption in the enterprise sector, RLUSD is expanding its footprint within the retail space at an impressive rate.

Focusing on the enterprise, creating value for retailers

The public was first introduced to Ripple’s RLUSD stablecoin towards the end of 2024. CEO Brad Garlinghouse outlined its focus towards institutional usage, thereby delineating it from many of its competitors primarily concentrated on retail transactions. This enterprise-focused narrative was not only in line with Ripple’s strategy but also capitalised on the strengths of the XRP Ledger (XRPL), such as speed, cost-efficiency, and finality. However, recent data indicate that RLUSD is gaining meaningful traction within the retail sector, with an increasing number of self-custodial wallets and platform integrations adopting the stablecoin.

Diverse voices, ongoing debates

Initial reports hinting at the creation of RLUSD surfaced well ahead of its official announcement in late 2024. Early on, Garlinghouse lauded it as the gold standard for enterprise-grade stablecoins. Around the same time, Ripple’s chief technology officer, David Schwartz, suggested RLUSD might only ever be available directly to institutions. This sparked an ongoing debate about its potentially intended exclusivity in favour of enterprises. Despite the debates and divided opinions, Transformers’ marketing head Harshit Gangwar asserted last week that RLUSD’s design includes both institutional and retail accessibility. However, upon its initial release, the announcement did not mention anything related to potential retail use cases. This led some to suggest that the stablecoin might be more of an institution-focused cryptocurrency.

A stable benchmark or a flexible tool?

In contrast to this enterprise-oriented focus, Erbil Karaman, co-founder of Huma Finance, explained that RLUSD today behaves like a general-purpose stablecoin competing with rivals across all market segments. RLUSD’s usage and adoption pattern is a clear indication of this fact. Asserting this fact, reports indicate a significant gap between the amount of RLUSD issued on Ethereum and the number of users who prefer using the XRP Ledger. As of now, 88% of the stablecoin’s current $557 million market cap comes from Ethereum-issued RLUSD. Meanwhile, XRPL users account for less than half of this amount. The intriguing point here is that despite this, over 90% of the total RLUSD holders are on the XRPL, leaving about 10% to Ethereum.

Concluding thoughts – the future of Ripple USD

While everyone agrees on the influence that the Ripple USD stablecoin has on the market, opinions still differ on whether this coin should be used more in the enterprise or retail sector. A substantial number of experts, including those from XRPL Labs, believe in the dual utilization of the stablecoin. Whether it’s labelled as enterprise-focused or retail-focused, one thing is clear – the Ripple USD stablecoin is more than just a stablecoin. It is a robust financial tool evolving to meet the demands of today’s ever-transforming digital economy. As adoption increases and more platforms integrate its use, one can anticipate that the reach of RLUSD will expand even further in the days to come. As we await Ripple’s response to the increasing retail use of RLUSD, the stories, conversations, and debates surrounding it continue to evolve. What we can conclude is that the journey of Ripple’s USD stablecoin, RLUSD, is just getting started.

Rise in Retail Adoption of Ripple’s RLUSD Stablecoin Initially Marketed for Enterprise Use