Ripple's RLUSD Stablecoin Expands to Ethereum L2s via Wormhole, Boosting Multichain Utility

Ripple is significantly expanding the reach of its U.S. dollar-backed stablecoin, RLUSD, by making it available on Ethereum layer-2 (L2) networks. This strategic move, facilitated by Wormhole's Native Token Transfers (NTT) standard, aims to embed the $1.3 billion token deeper into the multichain ecosystem, enhancing its utility for decentralized finance (DeFi) and institutional adoption.

Key Takeaways

• Ripple's RLUSD stablecoin is expanding to Ethereum L2s, including Optimism, Base, Ink, and Unichain.

• The expansion utilizes Wormhole's NTT standard for native cross-chain transfers, avoiding wrapped assets.

• This move aims to increase RLUSD's utility in DeFi and support institutional adoption.

• A wrapped version of XRP (wXRP) will also be supported, enabling easier swaps and payments with RLUSD.

• The rollout is pending regulatory approval from the New York Department of Financial Services (NYDFS).

Expanding Multichain Presence

Ripple announced the expansion of its RLUSD stablecoin to several Ethereum L2 networks, including Optimism, Coinbase's Base, Kraken's Ink, and Uniswap's Unichain. This initiative is part of Ripple's broader strategy to integrate RLUSD into the multichain landscape. The company has initiated a pilot phase, with a wider rollout anticipated next year, contingent upon receiving regulatory approval from the NYDFS.

Leveraging Wormhole for Seamless Transfers

The integration employs Wormhole's Native Token Transfers (NTT) standard. This technology allows RLUSD to move natively across different blockchains without the need for wrapping or synthetic assets. This approach is crucial for maintaining liquidity and regulatory control, while simultaneously enabling a variety of DeFi use cases on networks optimized for speed and reduced transaction costs.

Regulatory Compliance and Institutional Adoption

RLUSD, originally launched on Ethereum and the XRP Ledger, operates under a NYDFS Trust Charter. Ripple recently secured conditional approval for a federal trust bank charter from the Office of the Comptroller of the Currency (OCC), positioning RLUSD to be the first stablecoin under both state and federal regulatory oversight. Jack McDonald, senior vice president of stablecoin at Ripple, emphasized that stablecoins are a critical gateway to DeFi and institutional adoption, stating, "By launching RLUSD — the first U.S. 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."

Enhanced Utility for XRP Holders

In conjunction with the RLUSD expansion, Ripple is also supporting a wrapped version of XRP (wXRP). This integration makes it more convenient for XRP holders to utilize wXRP alongside RLUSD for activities such as swaps, lending, and payments across the supported chains. For instance, users could soon convert wXRP to RLUSD within a DeFi application on Optimism or Base without leaving the respective chain, thereby increasing the utility and interoperability of both assets within the broader crypto economy.

Sources

• RLUSD Stablecoin to Go Multichain, Expanding Beyond Ethereum, XRP Ledger, CoinDesk.

• Ripple Taps Wormhole To Expand $1.3 Billion RLUSD Stablecoin To Ethereum L2s— Here’s Why That’s ExtremelyBullish ⋆ ZyCrypto, ZyCrypto.

• XRP Goes Live On Solana And Ethereum In Major Adoption Boost— Here’s The Whole Bushel ⋆ ZyCrypto, ZyCrypto.