- Ripple has announced that it is expanding its presence on multiple chains by using Wormhole’s Native Token Transfers (NTT).
- RLUSD will use the burn-and-mint process, which helps it to maintain its ratio of 1:1 with USD.
- The announcement comes amid a growth in the overall stablecoin market thanks to growing regulatory clarity.
On June 4, Ripple, the leading blockchain infrastructure, announced the multi-chain expansion of its native stablecoin, RLUSD, by using Wormhole’s Native Token Transfers (NTT).
After its launch in 2024, this announcement is a major expansion for the RLUSD. The stablecoin is designed to meet various purposes, such as cross-border payments, institutional on/off-ramps, and tokenization use cases. The integration of the cross-chain bridge will increase the presence of Ripple’s native stablecoin on various Ethereum Layer 2 networks and related chains.
Wormhole Supports RLUSD’s Multi-Chain Push
Wormhole is a major cross-chain bridge, which is used to connect different blockchain networks. Ripple will use Wormhole’s Native Token Transfers (NTT). This is different from the other bridges that create wrapped versions of tokens. The NTT standard will allow Ripple to issue and control its RLUSD stablecoin directly on each blockchain.
On the Wormhole bridge, users can transact RLUSD from one blockchain to another blockchain by using the system, where tokens are burned on the source chain and issued in the destination chain. This kind of mechanism allows the stablecoin to maintain its backing with USD, Treasury securities, and cash equivalents. RLUSD is also known for its compliance with digital asset regulation with great transparency.
The integration will improve the liquidity with low-cost transactions. This will help it to avoid the problems of fragmented or synthetic assets by allowing the native movement of RLUSD across different blockchains.
Stablecoin Market Soars with Growing Regulatory Clarity
The recent regulatory developments around the digital sector, like the GENIUS Act and CLARITY Act, have helped the stablecoin market to grow. According to DeFiLIama, the cumulative market capitalization of stablecoins has soared to around $320 billion.
RLUSD was launched in December 2024 on the XRP Ledger and the Ethereum network. It has grown steadily because of its regulated status. As of now, the stablecoin is holding $1.74 billion in total market capitalization with its presence on the XRP Ledger and the Ethereum blockchain network, according torwa.xyz.
RLUSD is one of the most regulated stablecoins available in the market. Many institutions are planning to integrate these stablecoins to enhance cross-border transactions. Ripple’s stablecoin is also standing out in oversight from New York’s Department of Financial Services (NYDFS) trust company. Ripple has also applied for a federal OCC charter for even stronger dual regulation.
Recently, Mastercard also revealed its plan to increase its integration with the XRP Ledger (XRPL) in order to enhance support for settlement capabilities.
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