Ripple Expands RLUSD Stablecoin to Layer-2 Networks via Wormhole

Ripple’s latest strategic initiative involves deploying its U.S. dollar-pegged stablecoin, RLUSD, onto several prominent layer-2 ecosystems. According to the announcement, the payments firm is partnering with Wormhole and plans to begin testing RLUSD on Optimism (OP), Base, Ink, and Unichain. This expansion builds upon the stablecoin’s existing availability on Ripple’s own XRP Ledger and the Ethereum (ETH) blockchain, where it launched in mid-December 2024. The core objective is to increase RLUSD’s accessibility and utility across a broader spectrum of the decentralized finance (DeFi) landscape.

Critically, the expansion will utilize Wormhole’s Native Token Transfers (NTT) standard. This technology is pivotal as it allows Ripple to maintain native issuance and control over RLUSD even as it circulates on these new, external layer-2 networks. This approach ensures Ripple retains direct oversight of the stablecoin’s supply and compliance mechanisms, a non-negotiable aspect for a regulated financial instrument. Jack McDonald, Ripple’s senior vice president of stablecoins, framed the expansion as a foundational move, stating it aims “to bring people into the fold of the digital asset economy.”

In a cryptocurrency sector often scrutinized for regulatory ambiguity, Ripple is explicitly marketing RLUSD’s compliance credentials as a primary feature. The stablecoin holds a trust company charter issued by the New York Department of Financial Services (NYDFS), one of the most stringent state-level financial regulators in the United States. Furthermore, Ripple has applied for an additional charter from the federal Office of the Comptroller of the Currency (OCC). This dual-track regulatory strategy underscores Ripple’s intent to operate within established financial frameworks.

McDonald’s statement explicitly ties this regulatory standing to the layer-2 expansion, declaring, “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 on-chain efficiency converge.” This positions RLUSD not merely as another digital dollar but as a vanguard product designed to bridge traditional regulatory expectations with the scalability benefits of layer-2 blockchain technology. The claim of being “the first” NYDFS-regulated stablecoin on these specific networks is a direct attempt to carve out a unique market position.

The expansion comes as RLUSD demonstrates substantial early traction, boasting a market capitalization of $1.31 billion at the time of the announcement. This figure indicates significant initial adoption and liquidity for a stablecoin that is only a few months old. The move onto high-throughput, low-cost layer-2 networks like Optimism and Base is a logical step to fuel further growth by making RLUSD transactions faster and cheaper for end-users, a key factor for mass adoption in payments and DeFi.

Meanwhile, Ripple’s associated digital asset, XRP, presents a contrasting market picture. At the time of writing, XRP was trading at $1.89, representing a decline of nearly 5% over the preceding 24-hour period. Despite this short-term volatility, XRP maintains its position as the 5th-ranked cryptocurrency by market capitalization. The development around RLUSD highlights Ripple’s evolving business model, which increasingly focuses on enterprise-grade blockchain solutions and regulated digital assets alongside its longstanding involvement with the XRP Ledger. The success of RLUSD’s multi-chain deployment could serve as a critical test case for integrating compliant digital currencies into scalable, interconnected blockchain ecosystems.