Ripple’s RLUSD Hits $1B Ethereum Supply Milestone Amid Regulatory Demand Surge
Introduction: A New Chapter for Regulated Stablecoins
In a significant development for the digital asset industry, Ripple’s RLUSD stablecoin has surpassed $1 billion in circulating supply on the Ethereum blockchain. This milestone, confirmed by data from DefiLlama on November 28, 2025, marks the stablecoin's most robust growth phase since its launch and positions it among the fastest-expanding regulated USD stablecoins of the quarter. The achievement is not merely a numeric benchmark; it signals a pivotal shift in institutional adoption patterns. This expansion is being fueled by a confluence of factors, primarily a major regulatory approval in Abu Dhabi and the deepening of multi-chain liquidity across both Ethereum and the XRP Ledger (XRPL). With the Ethereum-based supply now constituting the majority of RLUSD’s total market cap—which sits near $1.02 billion across all networks—it is evident that demand is increasingly originating from the deep liquidity pools and institutional participants native to the world's largest stablecoin settlement chain.
The $1 Billion Milestone: By the Numbers
The crossing of the $1 billion threshold on Ethereum is a definitive marker of RLUSD's accelerating integration into the broader crypto economy. According to DefiLlama, this figure represents the circulating supply specifically on the Ethereum network. With RLUSD’s total market capitalization across all blockchains hovering around $1.02 billion, the data indicates that Ethereum now hosts the overwhelming majority of its supply.
This rapid accumulation of supply on Ethereum is particularly noteworthy. It demonstrates that RLUSD's utility and appeal are extending far beyond its native ecosystem on the XRP Ledger. The growth trajectory suggests that institutional and DeFi participants, who primarily operate on Ethereum due to its established infrastructure for lending, borrowing, and real-world asset (RWA) protocols, are driving this new wave of demand. The milestone solidifies RLUSD's position not just as an XRPL-native asset, but as a multi-chain digital dollar competing for mindshare and market share in a crowded field.
Regulatory Momentum: The Abu Dhabi Catalyst
A primary driver behind this surge in supply and confidence is a recent and substantial regulatory development. On November 28, 2025, the Abu Dhabi Global Market’s (ADGM) Financial Services Regulatory Authority (FSRA) officially recognized RLUSD as an “Accepted Fiat-Referenced Token.”
This designation is far more than a simple approval; it is a functional license for RLUSD to operate within one of the Middle East's premier financial hubs. The FSRA's recognition permits licensed financial institutions within the ADGM—including banks, payment service providers, brokers, and fintech companies—to integrate RLUSD into their core operations. This includes using the stablecoin for collateral purposes, facilitating settlements, and executing other regulated financial activities.
This regulatory endorsement in Abu Dhabi builds upon RLUSD’s existing foundation of oversight under a New York trust charter. This dual-layered compliance framework gives Ripple one of the most robust regulatory footprints in the entire stablecoin sector. For institutional players in regions like the Middle East, Europe, and Asia, this strong compliance pedigree makes RLUSD an increasingly attractive alternative to offshore or less rigorously regulated stablecoins. Ripple has consistently emphasized that RLUSD is fully backed by cash and U.S. treasuries, a reserve structure that aligns with other regulated tokens like USDC and provides a clear audit trail for risk-averse institutions.
Multi-Chain Strategy: Ethereum’s Dominance and XRPL’s Foundation
RLUSD’s architecture as a multi-chain asset is central to its current growth narrative. While the stablecoin is native to the XRP Ledger, where it now accounts for an estimated 77% of all stablecoin value, its primary growth engine has demonstrably shifted to Ethereum.
This strategic divergence highlights the unique strengths of each blockchain. The XRPL serves as a highly efficient foundation and primary issuance layer, particularly for payment-centric use cases. However, Ethereum’s vast DeFi ecosystem, its mature lending protocols like Aave and Compound, and its burgeoning institutional RWA market have made it the natural settlement layer for regulated USD liquidity seeking maximum utility and yield.
The expansion has been further facilitated by improved bridging infrastructure between the XRPL and Ethereum. New ecosystem integrations have made it seamless for cross-chain liquidity providers and exchanges to move RLUSD between the two networks. This interoperability unlocks powerful use cases, allowing entities to leverage RLUSD for everything from cross-border payments initiated on XRPL to complex DeFi strategies executed on Ethereum, all within a single, regulated stablecoin framework.
RLUSD in the Broader Stablecoin Landscape
With a supply exceeding $1 billion on Ethereum alone, RLUSD has firmly entered the top tier of what can be considered "new-generation" stablecoins. It now operates in a space alongside other regulated, institutionally-focused tokens like PayPal’s PYUSD.
However, it is crucial to maintain perspective regarding the overall stablecoin market. Despite its rapid ascent, RLUSD's footprint remains modest when compared to industry giants Tether (USDT) and USD Coin (USDC), which command market capitalizations in the tens of billions. These established behemoths benefit from first-mover advantage and deeply entrenched liquidity across virtually every trading venue and blockchain.
RLUSD’s strategy appears not to be one of direct, head-to-head competition with USDT or USDC in the near term. Instead, its growth indicates a targeted approach to capturing a specific segment of the market: compliance-sensitive institutions and users who prioritize regulatory clarity and multi-chain flexibility. By securing high-grade regulatory approvals and establishing a presence on both XRPL and Ethereum, Ripple has positioned RLUSD as a specialized tool for a maturing sector of the digital economy.
Conclusion: Positioning for a Compliant Future
The crossing of the $1 billion supply milestone on Ethereum is a watershed moment for Ripple’s RLUSD, but it is likely more indicative of a beginning than a peak. The stablecoin’s explosive growth is directly tethered to tangible developments: concrete regulatory wins and strategic multi-chain deployment. This provides a more sustainable-looking growth model than one based purely on speculative trading.
For readers and market observers, the key takeaways are clear. RLUSD has successfully transitioned from an XRPL-centric project to a multi-chain contender with a compelling value proposition for regulated finance. Its progress underscores a broader industry trend where regulatory compliance is becoming a non-negotiable feature for institutional adoption rather than an optional bonus.
Looking ahead, stakeholders should monitor several key areas: further regulatory approvals in other major jurisdictions, the expansion of RLUSD’s integration into additional DeFi protocols on Ethereum and other EVM-compatible chains, and its adoption for specific corporate settlement and treasury management use cases. With these foundational elements firmly in place, Ripple appears well-positioned to capture a meaningful and growing share of the compliant stablecoin market as we move into 2026.