Ripple Stablecoin Crosses 52% Supply Threshold on XRP Ledger

Ripple's dollar-pegged stablecoin RLUSD has seen its share of total circulating supply on the XRP Ledger (XRPL) climb to 52%, marking the first time the native Ripple chain holds a majority of the token's supply. On-chain volume of RLUSD on the XRPL surged 40-fold over the past six months, according to recent on-chain data.

As recently as April, only 17% of all RLUSD in circulation resided on the XRP Ledger, with the bulk of the stablecoin's supply held on the Ethereum blockchain. Critics of XRP had frequently cited this distribution as evidence of limited utility for Ripple's native chain. The dramatic shift in allocation — from 17% to 52% within months — represents a significant reversal of that trend.

The migration comes as Ripple also moves to broaden its presence in the broader stablecoin market. The company has joined a coalition of more than 140 financial and technology firms — including Mastercard and BlackRock — to support 'Open USD,' a new US dollar-pegged stablecoin. The consortium describes Open USD as a shared utility infrastructure designed for global payments.

Ripple's involvement in the Open USD initiative has drawn attention given that the company already operates its own regulated stablecoin in RLUSD. How the two products will coexist or compete remains an open question for the industry.

The broader stablecoin market continues to be dominated by Tether (USDT), which holds a market capitalization of $184 billion according to CoinGecko data, dwarfing all competing dollar-pegged tokens.

For Ripple, the XRPL's growing share of RLUSD supply signals increased on-chain activity and potentially stronger utility arguments for the network. However, the company's dual positioning — backing both its proprietary stablecoin and a major industry-wide initiative — raises questions about its long-term stablecoin strategy and how RLUSD will differentiate itself in an increasingly crowded market.