Ripple’s newly launched stablecoin RLUSD is seeing explosive early adoption, accumulating $76 million in deposits on Aave’s V3 Ethereum Core market just four days after its integration on April 21.
The swift uptake demonstrates strong market interest in RLUSD, which is designed to be fully backed 1:1 by U.S. dollar reserves and short-term government bonds.
Aimed at advancing compliance and transparency in decentralized finance (DeFi), RLUSD’s inclusion in Aave allows users to deposit and lend the stablecoin to earn interest, although it is not yet eligible to be used as collateral.
The early momentum highlights both investor confidence and Ripple’s growing influence in the DeFi sector.
Aave Integration Comes With Controlled Borrowing and Rising Market Capitalization
To manage risk, Aave has imposed a $10 million borrow cap on RLUSD, a typical precaution when onboarding new assets.
Despite this limit, the stablecoin has already reached a utilization rate of 14.86%, based on current Aave platform data.
Meanwhile, RLUSD’s total market capitalization is quickly approaching $300 million, a sharp rise considering it was only launched in December.
These figures reflect a promising trajectory for the stablecoin, especially as Ripple sets its sights on making RLUSD one of the dominant players in the space by the end of 2025.
The current Aave listing has clearly accelerated RLUSD’s liquidity and exposure within the DeFi ecosystem.
Cross-Chain “Burn-to-Mint” Technology Enables Fast Transfers
Ripple is also advancing cross-chain interoperability with RLUSD through a mechanism known as “burn-to-mint.”
Last Thursday, the company executed a notable transaction involving the burning and minting of 27 million RLUSD tokens.
The process facilitates swift and secure transfers of the stablecoin between the XRP Ledger and Ethereum networks, helping to preserve its 1:1 U.S. dollar peg.
Although the process is called a “burn,” it is not deflationary in nature, as the tokens are reminted on the corresponding chain and only incur a minimal XRP network fee.
Transfers are typically completed in under 20 seconds, providing a competitive edge in speed and efficiency.
Ripple Eyes Expansion Beyond Ethereum and the XRP Ledger
Currently, RLUSD is functional on both the Ethereum network and Ripple’s own XRP Ledger, but the company has already hinted at broader ambitions.
Plans are reportedly underway to expand RLUSD to additional blockchain networks such as Cardano, as Ripple seeks to boost liquidity, scalability, and adoption.
With its cross-chain features, fast settlement times, and growing traction on major DeFi platforms, RLUSD is positioning itself as a serious competitor to established stablecoins like USDC and USDT.
If its early performance on Aave is any indication, RLUSD could soon become a pivotal asset in both decentralized and traditional financial systems.