XRP Eyes $2.40 As Ripple's RLUSD Stablecoin Smashes $500M Market Cap

Ripple's U.S. dollar-pegged stablecoin RLUSD has surpassed $500 million in circulation just seven months after launch, placing it among the top 20 dollar-denominated stablecoins in the market.

What Happened: The token, which operates on both the XRP (CRYPTO: XRP) Ledger and Ethereum (CRYPTO: ETH), sees average daily trading volumes around $26 million, according to CoinGecko data.

The rapid growth comes as Ripple seeks a federal trust bank license from U.S. regulators, a move that would allow the firm to manage customer deposits and issue RLUSD under federal banking rules.

The Office of the Comptroller of the Currency (OCC) is reviewing the application. Circle, the issuer of USDC, has also applied for a similar license to oversee asset custody and manage reserves under stricter regulatory oversight.

RLUSD launched in December 2024 and is backed 1:1 by a combination of cash, cash equivalents, and short-term U.S. government bonds.

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Why It Matters: The expansion of RLUSD reflects wider momentum in the stablecoin sector, which has swelled to nearly $260 billion in total market capitalization.

Dollar-backed stablecoins now account for over 95% of that figure, based on The Block's latest data.

Ripple's stablecoin growth aligns with an increasingly crypto-friendly regulatory climate under the current Trump administration.

The OCC has introduced new guidelines that allow traditional banks to provide crypto-related services, marking a notable shift from earlier federal policy stances.

Price Action: At the time of writing, XRP is up 4% over the past 24 hours, trading at $2.39.

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