Ripple’s RLUSD & ETFs to Boost XRP Volume

Alexis Sirkia of Yellow Network, a layer-three protocol backed by Ripple Co-Founder Chris Larsen, emphasizes that Ripple USD (RLUSD) is designed as a liquidity amplifier rather than a competitor to XRP. In an exclusive discussion with CryptoPotato, Sirkia outlined that the stablecoin’s integration into U.S. banking infrastructure positions it as a compliant settlement layer for institutions, creating a feedback loop where increased RLUSD activity drives greater demand for XRP as a bridge currency. “This is not a zero-sum dynamic where RLUSD sidelines XRP, but about developing synergy,” Sirkia explained, highlighting that RLUSD has already been deployed in African markets via partners like Chipper Cash and Yellow Card for real-time swaps with tokenized money market funds.

The strategic deployment of RLUSD aims to enhance liquidity and adoption on the XRP Ledger (XRPL) by providing a regulated entry point for institutional capital. Sirkia believes that as RLUSD gains traction in compliant financial ecosystems, it will naturally increase the utility of XRP for cross-border settlements and interoperability between traditional finance and decentralized finance (DeFi). This synergy is critical for XRP’s long-term value proposition, which has always focused on bridging financial systems rather than competing with stablecoins.

The debut of the first U.S. XRP ETFs, including the REX-Osprey XRP ETF (XRPR) and ProShares Ultra XRP ETF, marks a significant milestone in XRP’s journey toward mainstream financial acceptance. Sirkia describes these launches as more than mere investment vehicles, noting that they signal growing regulatory clarity and institutional confidence in XRP’s compliance-focused framework. “It’s a strong signal of growing regulatory acceptance, opening a clearer pathway for XRP, an asset long focused on cross-border utility and compliance,” he stated, underscoring that ETFs provide a familiar and accessible channel for traditional investors to gain exposure to XRP without navigating crypto-native complexities.

This institutional accessibility is expected to counteract recent declines in XRP’s on-chain metrics. Throughout September, daily payments on the XRPL fell more than 75% to 223,000, while active addresses plummeted from 581,000 in June to just 31,000 by month-end. Whale sell-offs and a price slip below $3.00 compounded these challenges. However, Sirkia attributes these trends to a broader altcoin market dip rather than fundamental weaknesses in the XRPL itself, suggesting that ETF-driven liquidity could quickly reverse the downturn.

Despite the sharp decline in transaction volume and active addresses, Sirkia remains optimistic about XRP’s rebound potential. He argues that the real measure of any digital asset’s longevity lies not in its market cap but in its ability to deliver seamless, scalable, and interconnected liquidity across financial ecosystems. With RLUSD integration picking up momentum and ETFs broadening institutional participation, Sirkia anticipates a rapid recovery in XRP transaction volumes. “With institutional adoption through ETFs and the integration of RLUSD picking up, transaction volumes are likely to rebound quickly,” he projected, reinforcing XRP’s role as a bridge between traditional finance and DeFi.

Yellow Network, which is about to undertake its Token Generation Event (TGE), plays a pivotal role in this vision by providing core infrastructure and developer tools for high-performance DeFi applications on the XRPL. Backed by Ripple Co-Founder Chris Larsen, the protocol aims to power the next generation of financial interoperability, where XRP and RLUSD operate in tandem to facilitate cross-border liquidity. As regulatory pathways clear and institutional tools like ETFs gain traction, Sirkia believes XRP is poised to reclaim its position as a cornerstone of global finance—not through speculative rallies, but through utility-driven adoption.