Daily Vecsignal - RLUSD Stablecoin Reaches TVL Milestone as Ripple Releases New Attestation Report

 RLUSD Stablecoin Reaches TVL Milestone as Ripple Releases New Attestation Report

May 31, 2026 | VECS News

Ripple's RLUSD stablecoin has crossed a significant threshold, reaching a total value locked (TVL) of $2.8 billion, according to data published by DeFiLlama on June 4, 2025. The milestone comes alongside the release of Ripple's latest third-party attestation report, conducted by independent accounting firm Deloitte, which confirms that RLUSD is fully backed by US dollar deposits, short-term US Treasuries, and cash equivalents. The report, covering the period ending May 31, 2025, found that the stablecoin's reserves exceed its circulating supply by a margin of 102.3%, providing an additional buffer beyond the standard 1:1 backing. "This attestation is a cornerstone of trust for stablecoin users," said Brad Garlinghouse, CEO of Ripple. "Transparency and verification are non-negotiable in this industry. RLUSD is setting a new standard."

The growth trajectory of RLUSD has been remarkable. Launched in December 2024, the stablecoin has rapidly captured market share, now ranking as the fifth-largest USD-pegged stablecoin by market capitalization, trailing only USDT, USDC, DAI, and FDUSD. The 30-day growth rate of 34% outpaced all major competitors during the same period. "RLUSD is benefiting from the network effect of Ripple's existing payment infrastructure," explained David Schwartz, Ripple's Chief Technology Officer and original architect of the XRP Ledger. "Banks and financial institutions that already use RippleNet for cross-border payments naturally gravitate toward RLUSD for settlement. It is a seamless integration that competitors struggle to replicate." Schwartz noted that RLUSD transactions on the XRP Ledger now account for 18% of all stablecoin transfer volume, up from 5% just three months ago.

The implications for crypto investment instruments are multifaceted. The growth of RLUSD strengthens the XRP ecosystem, potentially increasing demand for XRP as a bridge asset. According to data from CoinMetrics, trading volumes for XRP/RLUSD pairs on major exchanges have surged 280% in the past quarter. "A thriving stablecoin on the XRP Ledger creates positive feedback loops," said Stuart Alderoty, Ripple's General Counsel. "More liquidity attracts more users, which attracts more developers, which attracts more capital. This is exactly the kind of virtuous cycle that drives ecosystem value." Alderoty emphasized that RLUSD's regulatory compliance, including full reserve attestations and adherence to New York's BitLicense framework, gives it a competitive advantage in the institutional market.

The attestation report has been welcomed by industry observers as a model for transparency. "Ripple is doing what every stablecoin issuer should do," said Jai Massari, a partner at Davis Polk & Wardwell and former chief legal officer of the Blockchain Association. "Regular, independent audits with a clear opinion from a reputable firm build the kind of trust that is essential for stablecoins to fulfill their promise as a pillar of the financial system." Massari contrasted Ripple's approach with that of some competitors who have faced criticism for opaque reserve practices. "The reserve buffer above 100% is particularly noteworthy. It shows a commitment to going beyond the minimum requirements."

The market reaction has been positive but measured. XRP, the native token of the XRP Ledger, saw a 4.2% increase in the 24 hours following the announcement, trading at $0.68. RLUSD itself maintained its tight peg at $0.9998, demonstrating strong market confidence. "The price action for XRP suggests that the market is gradually pricing in the value of RLUSD's success," said Katie Stockton, founder of Fairlead Strategies. "However, the impact is still indirect. RLUSD is not XRP, and the market is still figuring out the relationship between the two assets." Stockton noted that XRP's relative strength index remains in neutral territory, indicating room for further upside if RLUSD continues to gain traction.

For the broader stablecoin market, RLUSD's rise introduces new competitive dynamics. Tether (USDT) and Circle (USDC) have long dominated the space, but regulatory pressures in Europe and the United States are creating opportunities for compliant alternatives. "RLUSD is well-positioned to capture market share from incumbents that are struggling with regulatory uncertainty," said Caroline Hill, a senior analyst at Bloomberg Intelligence. "The Markets in Crypto-Assets (MiCA) regulation in Europe is forcing many stablecoin issuers to restructure. Ripple's proactive compliance posture gives RLUSD a first-mover advantage in the regulated market." Hill pointed out that RLUSD's integration with the XRP Ledger also provides technical advantages, including faster settlement times and lower transaction costs compared to Ethereum-based stablecoins.

The road ahead is not without challenges. RLUSD faces intense competition from well-established incumbents with deeper liquidity networks. Tether's USDT alone has a market capitalization of over $110 billion, and USDC stands at $34 billion. "Ripple's stablecoin is still a small player in a very large pond," cautioned Johnny Lyu, CEO of KuCoin. "To truly compete, RLUSD needs to be listed on more exchanges and integrated into more DeFi protocols. That takes time and significant financial incentives." Lyu noted that RLUSD is currently available on only 12 exchanges, compared to USDT's presence on over 200. "The distribution gap is the biggest hurdle."

Despite these challenges, the trajectory is undeniably positive. Ripple has announced plans to expand RLUSD's utility, including integration with its upcoming lending protocol and partnerships with several major decentralized exchanges. The company is also exploring the use of RLUSD for tokenized real-world assets, including Treasury bills and corporate bonds. "Stablecoins are the foundation of the digital asset economy," concluded Monica Long, President of Ripple. "RLUSD represents our commitment to building that foundation with integrity, transparency, and regulatory rigor. The TVL milestone is just the beginning."