Exploding Across Finance, Ripple's USD-Backed Stablecoin RLUSD Is Powering Everything from Institutional Collateral to DeFi Trades

Ripple provided an in-depth look on May 13 at the growing number of real-world use cases for stablecoins, with particular emphasis on how Ripple USD (RLUSD)

In a focused presentation on May 13, Ripple provided an in-depth look at the growing number of real-world use cases for stablecoins, showcasing how Ripple USD (RLUSD) is being deployed across diverse sectors of the financial ecosystem. The company highlighted specific functional applications that highlight the evolving utility of fiat-backed digital currencies in institutional workflows, payments infrastructure, and decentralized finance.

One primary use case Ripple emphasized is RLUSD’s function in institutional finance, where it serves as a settlement and collateral tool. The company described: “RLUSD—built on the XRP Ledger—acts as a trusted, regulated stablecoin that institutions can use to post collateral, settle trades, and unlock liquidity across blockchain-based platforms.” Through its integration with Hidden Road’s prime brokerage services, RLUSD enables cross-margining across forex, derivatives, and digital asset markets. This is designed to reduce capital inefficiencies and friction in multi-asset trading strategies—demonstrating the stablecoin’s applicability within complex financial operations.

Another major area of focus is RLUSD’s role in supporting tokenized real-world assets (RWAs) and decentralized trading. By operating on the XRP Ledger, RLUSD benefits from automated bridging between assets and access to a native decentralized exchange. Ripple explained:

On the XRP Ledger, RLUSD integrates seamlessly with native features such as auto-bridging and the built-in decentralized exchange (DEX), enabling efficient trading and on-chain settlement without the need for complex smart contracts.

This infrastructure allows stablecoins to serve as a reliable medium of exchange in tokenized treasuries, NFT marketplaces, and DeFi protocols that require stability and liquidity.

Beyond institutional and developer-focused uses, RLUSD also supports peer-to-peer payments and remittances. Ripple sees stablecoins as a mechanism to bypass traditional payment rails and reduce fees in cross-border transactions. With its USD backing and regulatory foundation, RLUSD offers everyday users a tool for saving, sending, and spending value globally. Ripple summarized the broader significance:

As stablecoins become essential infrastructure for the global economy, RLUSD is proving that utility, trust, and innovation can coexist in a single asset.

Distinguishing RLUSD from riskier alternatives, Ripple noted: “Unlike algorithmic stablecoins, which rely on automated monetary policies and can be prone to collapse, RLUSD is a fully USD-backed stablecoin issued by Ripple on the XRP Ledger.”