They emerged as a response to the unpredictability all too often associated with popular cryptocurrencies.
Their greater stability stems from being pegged to traditional currencies and commodities.
This also bolsters their standing within the context of daily transactions as they are deemed a more consistent medium of exchange.
Payment settlement system and currency exchange Ripple, known for its XRP crypto asset, has captured many investors’ attention with its Ripple USD (RLUSD) stablecoin.
The New York Department of Financial Services greenlighted RLUSD in December 2024.
Issued on Ripple’s XRP Ledger blockchain, the offering is known for faster and cheaper transactions.
In addition, the stablecoin is available on the Ethereum blockchain.
Featuring on the world’s second-biggest blockchain further enhances its market credibility.
The buzz around RLUSD has only intensified with a series of Ripple acquisitions, each worth hundreds of millions of dollars.
One of the company’s most notable additions has been Rail ($200 million), a stablecoin tech specialist reputed to handle 10% of all business-to-business stablecoin transactions globally.
With this platform, firms don’t have to have direct relationships with crypto exchanges to access stablecoin payment rails, the infrastructure that enables such transactions.
Ripple president Monica Long says stablecoins are quickly becoming a cornerstone of modern finance.
“With Rail, Ripple is uniquely positioned to drive the next phase of innovation and adoption of stablecoins and blockchain in global payments,” she says.
An even bigger Ripple purchase ($1.25 billion) has been Hidden Road, a global credit network for institutions.
Hidden Road specialises in prime brokerage and clearing and financing across both traditional and digital assets.
These buys have inspired investor confidence and buoyed the XRP price because they are a sign that trusted financial institutions are very much on Ripple’s radar.
Less than a year after launching, RLUSD surpassed $1 billion in market capitalisation.
Analysts say this has occurred for two main reasons: institutional adoption, and Ripple’s penchant for humanitarian partnerships.
Major non-profits like World Central Kitchen (WCK) , Water.org and Mercy Corps have found that urgent cross-border humanitarian transactions can be facilitated much faster with RLUSD.
WCK’s adoption of the stablecoin means that it can get funds to its partners in crisis zones where traditional banking systems have collapsed.
Long says Ripple’s humanitarian partners are redefining how urgent aid, sustainable development and financial support reach those who need it most.
“It’s a powerful example of what happens when innovation meets purpose, showing how blockchain technology can reshape the systems behind global relief and unlock lasting impact at scale.”
The uptake of RLUSD by global charity organisations is further evidence of its strength as a stablecoin that can convert funds within hours.
Furthermore, that beneficiaries can receive transactions without the fear of them ending up in the wrong hands – a problem that has dogged humanitarian efforts for decades – establishes high levels of trust.
It is proof in real-time that it is a system that works.
