Ripple is set to expand its US$1.3 billion RLUSD stablecoin to Ethereum Layer-2 networks, marking a significant step in the company’s strategy to scale usage, reduce transaction costs, and deepen integration with decentralized finance infrastructure.
The move will see RLUSD deployed on select Layer-2 networks built on Ethereum, allowing users to benefit from faster settlement speeds and lower fees compared to Ethereum’s mainnet. Ripple aims to position RLUSD as a cross-chain stablecoin that can operate seamlessly across both its native ecosystem and the wider Ethereum-based DeFi landscape.
RLUSD, which is fully backed by cash and cash-equivalent reserves, has grown rapidly since its launch, reaching a market capitalization of approximately US$1.3 billion. Ripple has promoted the stablecoin as an enterprise-grade digital dollar designed for payments, liquidity management, and on-chain financial applications, particularly for institutions seeking regulatory clarity.
By moving into Layer-2 environments, Ripple is targeting use cases such as decentralized exchanges, lending protocols, cross-border settlements, and tokenized real-world assets, where high fees on Ethereum have often limited stablecoin activity. Layer-2 networks also allow Ripple to compete more directly with established dollar-pegged stablecoins that already dominate Ethereum-based ecosystems.
The expansion comes as global interest in stablecoins accelerates following clearer regulatory frameworks in key markets, including the United States. Ripple has repeatedly emphasized compliance and transparency as core pillars of RLUSD, positioning it as a bridge between traditional finance and blockchain-based systems.
Industry analysts see the Layer-2 rollout as a calculated move to broaden RLUSD’s utility beyond Ripple’s payments network, while leveraging Ethereum’s deep developer base and liquidity. As competition intensifies among stablecoin issuers, the company’s success will likely depend on adoption by DeFi platforms and institutional users seeking scalable, low-cost settlement options.
