• Ripple USD (RLUSD) first U.S.-regulated stablecoin to deploy natively on L2s via Wormhole NTT.

• Expansion starts on Optimism, extending to Base, Ink, and Unichain for seamless cross-chain operations.

• RLUSD holds over $1 billion in Ethereum liquidity, with 79.2% distribution there and 20.8% on XRPL, per DeFiLlama data.

Ripple USD (RLUSD) expands to Layer 2 networks, boosting multichain stablecoin adoption. Discover how this regulated innovation enhances DeFi liquidity and XRP utility—explore the details now.

What is Ripple USD’s Expansion to Layer 2 Networks?

Ripple USD (RLUSD), Ripple’s stablecoin regulated under a New York Department of Financial Services Trust Charter, has now expanded to multiple Layer 2 networks for the first time. This multichain rollout, beginning with testing on Optimism, Base, Ink, and Unichain, utilizes Wormhole’s Native Token Transfers (NTT) standard to enable native issuance and transfers without traditional bridging risks. The initiative supports Ripple’s broader strategy for compliant, efficient stablecoin deployment across ecosystems.

How Does Wormhole’s NTT Framework Benefit RLUSD’s Multichain Deployment?

The NTT framework allows RLUSD to operate as a native token on each supported chain, eliminating the vulnerabilities associated with wrapped tokens or centralized bridges. This preserves full control over issuance and redemption while minimizing counterparty risks, as confirmed by Ripple’s technical documentation. For instance, institutions can now transfer RLUSD seamlessly between Layer 2s like Optimism and Base, fostering deeper liquidity pools without fragmentation. Experts note that this approach aligns with growing demands for secure, scalable DeFi infrastructure, with Wormhole processing over 1 billion cross-chain messages annually. Ripple’s SVP of Stablecoin, Jack McDonald, emphasized, “Stablecoins are the gateway to DeFi and institutional adoption. By launching RLUSD on these L2 networks, we are setting the standard where compliance and on-chain efficiency converge.” This deployment positions RLUSD ahead of competitors by integrating regulatory oversight directly into multichain operations, reducing settlement times to seconds and enhancing capital efficiency for users in high-volume trading environments.

Frequently Asked Questions

What Layer 2 Networks is Ripple USD Expanding To?

Ripple USD (RLUSD) is initially rolling out on Optimism, Base, Ink, and Unichain through Wormhole’s NTT integration. This selection targets high-throughput Ethereum scaling solutions, enabling RLUSD to support faster, cheaper transactions while maintaining U.S. regulatory compliance under NYDFS oversight.

How Does RLUSD’s Regulation Compare to Other Stablecoins?

Unlike USDC or USDT, RLUSD operates under a rigorous NYDFS Trust Charter, with Ripple pursuing an OCC charter for federal supervision. This dual-layer regulation ensures monthly attestations and full reserves, providing superior transparency and institutional trust for cross-border payments and DeFi applications.

Key Takeaways

• Regulatory Innovation: RLUSD’s native L2 deployment establishes a benchmark for compliant multichain stablecoins, directly challenging established players like USDC.
• Enhanced Liquidity: Integration with Wormhole NTT boosts XRP interoperability, enabling wrapped XRP pairings for lending and yield farming across chains.
• Institutional Focus: With over 75 global licenses, Ripple strengthens RLUSD’s role in DeFi, urging users to monitor upcoming full launches for expanded utility.

Source: DeFiLlama

Conclusion

Ripple USD (RLUSD)’s expansion to Layer 2 networks via Wormhole’s NTT framework underscores Ripple’s commitment to bridging traditional finance with blockchain innovation. By prioritizing RLUSD regulatory compliance and multichain efficiency, this move not only bolsters XRP’s liquidity role but also paves the way for broader institutional adoption in DeFi. As Ripple advances toward full RLUSD launch next year, stakeholders should watch for increased interoperability and global licensing impacts to shape the future of stablecoin ecosystems.

Ripple has expanded its U.S.-regulated stablecoin, Ripple USD (RLUSD), to Layer 2 networks for the first time, advancing its multichain strategy ahead of a full launch next year. The testing phase kicks off on Optimism, Base, Ink, and Unichain, leveraging Wormhole’s Native Token Transfers (NTT) standard. This technology facilitates asset movement across chains without wrapped tokens or conventional bridges, positioning RLUSD as the pioneering U.S. Trust-regulated stablecoin on these L2 platforms.

Unlike typical bridged assets, the NTT framework ensures RLUSD’s native issuance and governance remain intact across all chains. This mitigates bridge-related risks, upholds liquidity standards, and offers a compliant avenue for institutional DeFi growth. The announcement highlights Optimism as the initial hub, with interconnected support for Base, Ink, and Unichain through unified NTT infrastructure, allowing Ripple to expand RLUSD scalability without ecosystem silos.

Ripple’s SVP of Stablecoin, Jack McDonald, noted that this expansion addresses surging institutional needs for a compliant stablecoin with seamless cross-chain mobility and reliable supervision. “Stablecoins serve as the entry to DeFi and institutional uptake,” he stated. “Launching RLUSD on these L2s establishes compliance and on-chain performance as the new norm.”

RLUSD’s foundation stems from a New York Department of Financial Services (NYDFS) Trust Charter, among the strictest in the crypto sector. As reported by COINOTAG, Ripple has submitted an application for an OCC charter; approval would render RLUSD the first stablecoin under concurrent state and federal regulation. This surpasses structures of leading stablecoins like USDC and USDT.

Ripple boasts over 75 worldwide licenses, bolstered by recent nods in Dubai and Abu Dhabi, amplifying RLUSD’s global footprint. The multichain push aims to elevate XRP’s function in cross-chain liquidity. Hex Trust’s issuance of wrapped XRP (wXRP) aids interoperability, letting XRP holders engage wXRP with RLUSD on compatible chains for exchanges, remittances, loans, or yield opportunities.

Data from DeFiLlama indicates Ethereum dominates RLUSD holdings at 79.2%, exceeding $1 billion, with 20.8% on XRPL. This distribution highlights RLUSD’s Ethereum-centric growth while tying into Ripple’s native ledger.

Overall, RLUSD’s Layer 2 integration redefines multichain stablecoin standards, cementing Ripple’s rivalry with USDC dominance. It amplifies utility for XRP and RLUSD alike, deepening Ripple’s stake in institutional DeFi and cross-chain flows. As testing progresses, this development signals a compliant, efficient future for blockchain-based finance.