Institutional Adoption Propels RLUSD, But What About XRP?

Ripple’s US dollar-backed stablecoin, RLUSD, has surged to a new all-time high, fueled by a series of high-profile partnerships and regulatory milestones that are accelerating its adoption among institutional investors.

Yet, RLUSD appears to be the only token benefiting from Ripple’s advancements and expansion, as XRP bears the weight of market forces.

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RLUSD Market Cap Surges Past $1.38 Billion as Ripple Expands Institutional Adoption

DefiLlama data shows that the RLUSD stablecoin’s market capitalization now exceeds $1.38 billion. This makes it one of the fastest-growing digital assets, with $125 million added since late November 2025.

The latest driver of RLUSD growth comes from Ripple’s newly announced partnership with LMAX Group. LMAX Group is a leading global cross-asset marketplace for foreign exchange and digital assets.

As part of a multi-year collaboration, RLUSD will be integrated as a core collateral asset across LMAX’s institutional trading infrastructure.

This integration enables banks, brokers, and buy-side institutions to leverage RLUSD for cross-collateralization and margin efficiency in spot crypto, perpetual futures, and CFD trading.

“Partnering with a leader like Ripple is a milestone for LMAX,” said David Mercer, CEO of LMAX Group. “With greater US and global regulatory clarity, fiat-backed stablecoins will be a key catalyst in driving the convergence of TradFi and digital assets, and RLUSD is positioned at the forefront.”

The LMAX partnership is complemented by a $150 million financing commitment from Ripple. This will support the exchange’s long-term cross-asset growth strategy.

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Institutional clients will benefit from enhanced liquidity, secure custody via segregated wallets, and 24/7 access to a cross-asset marketplace. Notably, this feature is not typically available with traditional fiat currencies.

“LMAX has long been a leader in providing the transparent, regulated infrastructure that institutional players require. This partnership will accelerate the utilization of RLUSD—already a top-five USD-backed stablecoin—within one of the largest and most sophisticated trading environments,” added Jack McDonald, SVP of Stablecoins at Ripple.

RLUSD’s growth trajectory is further bolstered by Interactive Brokers’ announcement that eligible clients will soon be able to fund accounts using the stablecoin. With this, it expands its footprint into mainstream brokerage services.

Other notable institutional adopters include DBS, Franklin Templeton, and SBI Holdings. This demonstrates growing confidence in RLUSD as a trusted settlement and collateral asset.

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Ethereum Dominates RLUSD Supply, Limiting XRP Utility

Despite these successes, the majority of RLUSD’s supply (nearly 76%) resides on Ethereum rather than Ripple’s native XRP Ledger (XRPL).

Therefore, while Ethereum integration unlocks significant DeFi liquidity, it limits XRP’s direct utility. This is because RLUSD transactions on Ethereum do not contribute to XRP burns or holder revenue.

This state of affairs has sparked debate within the XRP and broader crypto communities. Concern comes amid expectations that Ripple’s innovations would directly bolster XRP’s demand.

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Notwithstanding, regulatory approvals continue to support RLUSD’s institutional credibility. The Abu Dhabi Financial Services Regulatory Authority (FSRA) greenlighted RLUSD for regulated institutional use.

Meanwhile, preliminary European EMI approval in Luxembourg opens pathways for EU-wide operations. Ripple now stands out as one of the most institutionally compliant crypto firms globally, with 75+ regulatory licenses.

With market capitalization topping $1.38 billion and a growing list of high-profile partnerships, RLUSD is positioned for further expansion.

Its integration into LMAX Group’s trading infrastructure and recognition by global regulators mark a significant step toward mainstream stablecoin adoption, bridging the gap between crypto markets and TradFi ecosystems.

As of this writing, XRP was trading for $2.08, down by over 1% in the last 24 hours.