It is a truth universally acknowledged, that a stablecoin in possession of good fortune, must be favored by institutional investors. And so it has proven with Ripple’s RLUSD, which has lately ascended to heights previously unimagined, propelled by partnerships and regulatory approvals, a veritable whirlwind of progress.
Yet, observe the curious spectacle! While Ripple flourishes, its own native token, XRP, languishes somewhat, burdened, it seems, by the weight of the market’s fickle affections. A most peculiar development, wouldn’t you agree? 🧐
RLUSD Market Cap Surges Past $1.38 Billion as Ripple Expands Institutional Adoption
The numbers, as reported by DefiLlama, speak for themselves, though numbers, one must admit, are often prone to exaggeration. RLUSD’s market capitalization now exceeds $1.38 billion, a growth so swift it almost begs the question of whether it is truly sustainable. Some $125 million has been added since late November 2025 – a sum that would certainly have made a comfortable living for a minor nobleman in days gone by.
The latest impetus for this ascent comes from Ripple’s alliance with LMAX Group, a marketplace for foreign exchange and digital assets – a grand name for what is, in essence, a sophisticated exchange. A partnership, one might say, of considerable, albeit predictable, consequence.
We’re partnering with @LMAX to accelerate institutional stablecoin adoption and cross-asset mobility. $RLUSD will be integrated as core collateral across LMAX’s global marketplace – unlocking cross-collateral efficiencies across crypto and traditional markets.
– Ripple (@Ripple) January 15, 2026
A multi-year collaboration it is, wherein RLUSD will become a key component of LMAX’s trading structure. Banks, brokers, and institutions – all clamoring for efficiency, naturally – will be able to leverage RLUSD in their dealings.
And the CEO of LMAX, David Mercer, proclaims that this partnership is a “milestone.” One suspects such pronouncements are habitual among those in positions of authority. “Greater clarity” and “catalyst” are words often deployed to impress, rather than to inform. Still, a milestone it may be, of some sort.
“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.”
Further bolstering this progress is a commitment of $150 million from Ripple itself, a sum which, one imagines, scarcely pinches the company’s coffers. It will support the exchange’s ambitions for growth – a laudable, if rather commonplace, objective.
Clients, so it is claimed, will benefit from liquidity, secure custody, and access – available day and night, even when a civilized person would be sleeping. A convenience, no doubt, but one wonders if such constant access is truly necessary for the well-being of the investor.
“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 fortunes are further amplified by Interactive Brokers, who will soon allow clients to fund accounts with the stablecoin. A broadening of reach into mainstream brokerage – a sign of acceptance, certainly, if one is inclined towards optimism.
RLUSD get’s more traction:
Interactive Brokers (Nasdaq: IBKR), an automated global electronic broker, today announced that eligible clients of Interactive Brokers LLC (IB LLC) can now fund their brokerage accounts using stablecoin.
Clients can fund their accounts by sending…
– Leonidas (@LeoHadjiloizou) January 15, 2026
DBS, Franklin Templeton, and SBI Holdings also show trust in RLUSD. Indeed, confidence appears to be growing. One might almost suspect these institutions are motivated by the same desire for profit as anyone else. 😇
Ethereum Dominates RLUSD Supply, Limiting XRP Utility
However, and here we arrive at a point of considerable irony, the bulk of RLUSD (nearly 76%) finds its home on Ethereum, rather than on Ripple’s own XRP Ledger. A situation that, to put it mildly, leaves something to be desired. It is akin to building a magnificent manor house and then choosing to furnish it with the possessions of your neighbor!
While Ethereum may offer accessibility and liquidity, it does little to enhance XRP’s direct utility. Transactions on Ethereum fail to contribute to XRP burns, or to benefit XRP holders – a rather significant omission, one might think.
A friend of mine FaceTimed me today. Long-time $XRP holder.
He’d just found out RLUSD lives on Ethereum. He was in awe, wondering what’s the point of Ripple then.
I LOL’d and said “I’ve been tweeting about it non-stop for weeks”.
– jfab.eth (@josefabregab) September 2, 2025
This has, understandably, caused some consternation among those who hold XRP. One had hoped, after all, that Ripple’s advancements would directly benefit its native token. One is frequently disappointed, however, in the affairs of men-and tokens.
>RLUSD largely displaces the need for XRP for cross border transactions
>80% of RLUSD is on Ethereum
>Ethereum doesn’t use XRP
>XRP holders don’t receive revenue from RLUSD
>XRP is the gas token of a chain that has little to no activity
>Little to no XRP is burned on XRPLYou…
– Zach Rynes | CLG (@ChainLinkGod) September 30, 2025
Happily, regulatory approvals continue to flow, granting RLUSD further credibility. The Abu Dhabi authority has given its blessing, and preliminary approval in Luxembourg may pave the way for expansion throughout Europe. Ripple now flaunts no fewer than 75 regulatory licenses – a substantial number, and a testament to their diligence, or perhaps their lawyers.
With a market capitalization exceeding $1.38 billion and partnerships galore, RLUSD seems poised for continued expansion. Its integration into LMAX and the approval of regulators represent a significant step towards stablecoin acceptance, bridging the gap between the established financial world and the novel realm of crypto.
As of this moment, XRP languishes at $2.08, diminished by a little over 1% in the past 24 hours. Such is the way of the market: fortunes rise and fall, and one should, perhaps, not become too attached to either. 🤷
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2026-01-16 12:03