XRP is back in the spotlight as Ripple strategically introduces two powerful developments: the launch of its RLUSD stablecoin and the approval of U.S-based XRP ETFs, both of which could substantially boost XRP volume and visibility.

RLUSD and XRP: A Growing Liquidity Cycle

According to insights shared by Alexis Sirkia, Captain of the Yellow Network, this dual strategy is not simply a diversification move—it’s a deliberate effort to cultivate liquidity and institutional adoption. In a conversation with CryptoPotato, Sirkia emphasized that RLUSD is designed to complement XRP rather than compete with it. “This isn’t about RLUSD replacing XRP,” he said. “It’s about creating a feedback mechanism where one strengthens the other.”

RLUSD is making inroads into U.S. banking systems as a compliant settlement tool for institutions. Its growing adoption is expected to indirectly stimulate demand for XRP, primarily as a bridge currency settling cross-border or DeFi transactions. This synergy forms a cycle: RLUSD drives usage, which in turn requires XRP for settling between disparate financial systems.

Concrete examples of RLUSD’s traction include its availability in African markets through platforms like Chipper Cash and Yellow Card. Additionally, it’s being utilized for instant swaps involving tokenized money market funds—providing real-world use cases that reinforce the stablecoin’s practicality.

Visualizing blockchain-based liquidity systems connecting financial networks.

ETFs Enhance XRP’s Institutional Reach

Ripple’s momentum doesn’t stop at stablecoins. The introduction of the first U.S.-based XRP exchange-traded funds (ETFs) marks a pivotal moment for mainstream exposure. ETFs like REX-Osprey’s XRPR and the ProShares Ultra XRP ETF are now publicly tradable instruments, bringing XRP to institutional and conservative investors previously locked out of the crypto market.

“These ETFs do more than open up XRP to a broader financial base,” noted Sirkia. “They reflect rising regulatory clarity and show that XRP’s unique utility in cross-border finance is finally gaining mainstream acknowledgment.” The ETFs act as a bridge, much like XRP itself, between traditional investment vehicles and blockchain-based finance.

Market Weakness or Setup for a Recovery?

Despite these exciting developments, XRP’s performance in recent months has been less than stellar. September saw a sharp dip in XRPL’s daily transactions, plummeting over 75% to just 223,000. Wallet activity also tumbled, with active addresses dropping from 581,000 in June to only 31,000 by month’s end. Contributing to the slow down were whale sell-offs and a notable decline below the $3 mark.

Still, Sirkia points out that this decline is part of a broader altcoin sector slump rather than a failure specific to XRP. He believes that with RLUSD now providing real demand channels, and ETF listings offering increased credibility, XRP transaction volumes will likely experience a renewed upward trend. “True value lies not in current prices, but in an asset’s ability to enable scalable liquidity and reliable infrastructure—qualities XRP is purpose-built for,” he said.

Behind the Scenes: Yellow Network’s Role

This broader XRP ecosystem evolution includes the emergence of the Yellow Network—a layer-three protocol and developer toolkit aimed at accelerating decentralized finance. Backed by Ripple co-founder Chris Larsen, the Yellow Network is preparing for its Token Generation Event (TGE) and could serve as a vital backbone for scalable DeFi applications running on XRPL and beyond.

Related: XRP Price: $12M Max Pain for Bears

The synergy between RLUSD’s integration, ETF recognition, and supporting networks like Yellow signals that Ripple’s approach is not just about price or hype. It’s about forming an architecture for institutional-grade liquidity and DeFi innovation—purpose-built to position XRP as a long-term player in the global digital asset economy.