The cryptocurrency XRP is poised for a significant boost in 2025 with the introduction of RLUSD, a stablecoin tied to the US dollar. RLUSD will operate on the XRP Ledger (XRPL) and Ethereum blockchains, utilizing XRP as gas for transactions. Every transaction burns a portion of XRP, thereby directly increasing demand for XRP and reducing its circulating supply.
Georgios Vlachos, co-founder of the Axelar interoperability platform, noted that stablecoins like RLUSD play a vital role as a store of value and a medium of exchange, especially in emerging economies. With RLUSD transactions and remittances settling on XRPL and the XRP-EVM sidechain, XRP holders stand to benefit significantly from this new stablecoin integration.
XRP’s recent price performance underscores the potential for further growth. The cryptocurrency experienced a dramatic rally in late 2024, reaching a seven-year high of $2.90 before stabilizing. Several catalysts contributed to this surge, including pro-crypto political developments and the promise of regulatory clarity under the incoming U.S. administration.
Applications for XRP-focused exchange-traded funds (ETFs) from major asset management firms, including WisdomTree and Bitwise, have also bolstered investor interest in XRP. If approved, these ETFs could amplify XRP’s liquidity and adoption in institutional markets. Furthermore, XRP’s market position strengthened in December 2024 when it overtook Solana in market capitalization, becoming the fourth-largest cryptocurrency globally.
The RLUSD stablecoin has received regulatory approval from the New York Department of Financial Services (NYDFS). Cash reserves will fully back it and redeem it at a 1:1 ratio with US dollars, ensuring its stability and reliability. As the stablecoin integrates into XRP’s ecosystem, its usage could further drive demand for it in remittances and global payments.
We advise market participants to temper their speculative enthusiasm, despite the high excitement surrounding RLUSD and XRP. The design of stablecoins prioritizes stability over price appreciation. Ripple’s CTO, David Schwartz, cautioned against overspending on RLUSD, emphasizing its role as a transactional asset rather than an investment.
As the crypto landscape evolves in 2025, XRP appears well-positioned to capitalize on these developments. The launch of RLUSD, along with broader ecosystem growth and regulatory advancements, could solidify XRP’s position as a key player in global digital payments.
