Ripple’s stablecoin RLUSD is making its presence felt. Users deposited a whopping $76 million worth of RLUSD within four days on the leading liquidity protocol Aave. On 21st April, Aave opened up RLUSD supply and borrowing on its Aave V3 Ethereum Core market.
Ripple feels that technology is moving fast, but cross-border payments lag behind. Slow-moving legacy systems are still hindering global payments. Ripple envisions payments to be cheap, fast, and frictionless. The solution: stablecoins.
Stablecoins can settle instantly, charge low fees, and are more accessible. This has created a boom in the use of stablecoins.
The stablecoin market cap breached $210 billion last year. For 2022 alone, stablecoins settled nearly $7 trillion, outperforming the likes of PayPal and Mastercard.
Stablecoins are cryptocurrencies that are pegged to traditional assets such as the dollar or euro. This association maintains its value steady, which makes it best for payments. They combine the assurance of fiat currency with the swiftness of the blockchain.
Businesses prefer them. Traditional cross-border payments are high-cost and involve numerous middlemen. Stablecoins eliminate the need for middlemen and settle payments instantly. They also eliminate the risk of failed payments. Blockchains are transparent, and payments are secure and easy to trace.
Stablecoins are also opening up opportunities for those from emerging markets. Where the banking sector is weak, stablecoins are a lifeline. Stablecoins make global finance more accessible and create new growth avenues for fintechs and neobanks. Ripple’s RLUSD is intended to spearhead this transformation.
It is fully backed by U.S. dollar deposits, government bonds, and cash equivalents. BPM, a top audit firm, checks its reserves monthly. RLUSD is built for big money movements, not just retail use.
Ripple payments power global growth with RLUSD
Ripple Payments has processed $70 billion across over 90 markets. Enterprises now have RLUSD integrated and can settle all payments instantly and access DeFi liquidity pools.
Exchanges such as Revolut, LMAX, and Zero Hash have listed RLUSD. Ripple customers like iSend and BKK Forex use it to enhance their cross-border payments.
By combining stablecoins and enterprise-level blockchain technology, Ripple is establishing a new benchmark for cross-border payments. RLUSD’s initial success on Aave demonstrates high demand.
Nevertheless, companies now have an effective, compliant, and secure means for moving funds across the world faster and smarter. Ripple is not leading a pursuit to catch up. It is pioneering the next era of digital finance.
