XRP Gains Momentum with Ripple’s RLUSD Strategy

XRP is poised for significant growth thanks to Ripple’s evolving RLUSD stablecoin strategy, which is shaping up to be a long-term game changer for the XRP ecosystem.

One of the most prominent supporters of the XRP community, known as Eri Chan, recently shed light on the powerful implications of Ripple’s RLUSD moves for the asset. In a tweet shared on June 6, she highlighted Ripple’s strategic focus on long-term development and emphasized the importance of patience among XRP investors who want to benefit from the company’s roadmap.

Chan pointed to several key developments that show Ripple is laying a strong foundation for RLUSD and, by extension, XRP. A major component of this strategy is the introduction of native smart contract functionality to the XRP Ledger (XRPL). This move marks Ripple’s attempt to directly challenge Ethereum’s dominance in the smart contract space.

The recent launch of the XRPL Ethereum Virtual Machine (EVM) Sidechain on June 30 is a foundational step in this direction. This sidechain, now live on the mainnet after extensive development, enables Ethereum-compatible smart contracts to run on XRPL, giving developers access to new tools without jumping to a different ecosystem.

According to Chan, this advancement could drastically boost XRP’s ecosystem utility. Currently, over 68% of RLUSD’s total circulating supply—more than $391 million of a $485 million cap—is hosted on Ethereum. By enabling smart contracts on the XRPL, Ripple could make its network a faster and more cost-effective alternative for RLUSD operations. That shift in preference from Ethereum to XRPL could lead to higher minting and circulation of RLUSD directly on XRPL, thereby increasing fee-based revenues derived from XRP and supporting its broader adoption.

Another key highlight of Ripple’s RLUSD strategy involves regulatory initiatives. On June 2, Ripple formally applied for a national banking charter with the U.S. Office of the Comptroller of the Currency (OCC). This follows the acquisition of a state-issued license from the New York Department of Financial Services (NYDFS) back in December. If approved, this move would establish a dual-layer regulatory framework for RLUSD, enhancing its legitimacy in institutional financial circles.

Chan emphasized that federal oversight—not just state-level regulation—can significantly elevate RLUSD’s credibility among large financial institutions. It would also lay the groundwork for the stablecoin to be integrated into national payment infrastructures and potentially be granted access to a Federal Reserve master account. These milestones are seen as essential in making RLUSD a cornerstone of Ripple’s ecosystem strategy and, in turn, supercharging the utility of XRP itself.

Despite the promising developments, Chan stressed the importance of patience. The transformation driven by RLUSD and its smart contract infrastructure won’t happen overnight, but the steps being taken are considered foundational and future-facing.

Related: Expert Advice: Sell XRP If You’re Confused

Ultimately, Ripple’s methodical approach—focusing on compliance, interoperability, and innovation—reflects its commitment to building infrastructure that sustains long-term XRP adoption. Whether it’s by enhancing smart contract capabilities or securing broader regulatory acceptance for RLUSD, the trajectory being set today could very well define the future of XRP’s role in cross-border payments and decentralized finance.