Ripple’s RLUSD Stablecoin Debuts on Binance, Eyeing Broader Adoption

Ripple’s stablecoin RLUSD is now available on Binance, the world’s largest cryptocurrency exchange. Ripple is celebrating new options for RLUSD – but the integration on Binance is being implemented gradually and reflects priorities.

Around 13 months after its debut, the Ripple stablecoin RLUSD has also arrived on Binance, the world’s leading cryptocurrency exchange. In a press release, Ripple speaks of the “continued building of momentum” for RLUSD, and CEO Brad Garlinghouse posted on X that he was “extremely positive” about its development.

With a market capitalization of just over $1.3 billion, RLUSD has so far only achieved a respectable result in the stablecoin market; it still needs many billions of dollars in market penetration to launch its hoped-for challenge to market leaders Tether (USDT) and USDC (Circle).

RLUSD comes in two versions: The one for Ethereum is outperforming Ripple

Binance will initially support RLUSD with fee-free exchanges to and from USDT and United Stables (U), according to a press release. Binance will also create a trading pair between RLUSD and Ripple’s original altcoin, XRP. However, this presents a curious situation: RLUSD essentially exists in two versions, one on the Ethereum blockchain and the other on Ripple’s XRPL network. Since Binance is initially only offering the Ethereum version of RLUSD, this version would also be used for trading against XRP, bypassing the direct XRPL connection.

A look at the blockchain data shows that RLUSD currently has nearly $380 million locked in the XRPL network, while on the Ethereum blockchain it’s a good $1 billion. In practice, RLUSD thus receives significantly more attention in the ETH ecosystem than in the Ripple environment. However,the stablecoin should generate fee revenue in XRP through its use in the XRPL network, thereby potentially strengthening the Ripple altcoin.

Conclusion: RLUSD hopes to attract new users through Binance integration

According to Ripple, Binance will also offer an interest program for RLUSD “soon,” which is routine for other major stablecoins. Binance promises around 7 percent annual interest for market leaders USDT and USDC; similar levels for RLUSD could generate interest. It is unknown whether Ripple is financially supporting the stablecoin’s presence on Binance.

Just a few days ago, Ripple paid $150 million to promote the stablecoin on the financial institution LMAX – a substantial sum compared to RLUSD’s market capitalization. Ripple will have to begin analyzing the reasons why the stablecoin, in its XRPL network version, is not gaining momentum and why Binance also favors the Ethereum version. RLUSD’s profile needs refinement and is noticeably disconcerting when it falls far short of expectations, especially within the Ripple ecosystem itself.

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