Ripple’s RLUSD Enters Aave with $55M Pool, Eyes Broader DeFi Impact

Ripple’s enterprise-grade stablecoin, RLUSD, has officially joined the Aave ecosystem, significantly expanding its decentralized finance (DeFi) reach. In an announcement made on April 22 via X, Ripple revealed that Aave users can now supply and borrow RLUSD. The lending pool is set at a $50 million cap, while the borrowing pool stands at $5 million.

This development represents a key milestone for RLUSD, as Aave currently leads all decentralized lending protocols by total value locked (TVL), according to DeFiLlama. Aave’s presence across 16 different blockchains — including Ethereum (ETH), Base (BASE), Optimism (OP), and Arbitrum (ARB) — positions RLUSD for even greater utility and exposure.

Aave Integration Follows Strategic Acquisition

Ripple’s integration with Aave follows another strategic move: its acquisition of Hidden Road, a non-bank prime broker. As part of this deal, Hidden Road will use RLUSD as collateral and rely on the XRP Ledger for post-trade settlement processes. This enhances RLUSD’s position not only in DeFi, but also in traditional finance, bridging the gap between the two.

The New York State Department of Financial Services has approved RLUSD, giving it a strong regulatory foundation. Ripple designed the stablecoin to combine the reliability of fiat currency with the operational advantages of blockchain technology. RLUSD supports key financial use cases such as international payments, smooth crypto on/off ramping, and entry into the growing sector of tokenized real-world assets.

RLUSD Expands Presence Across Major Platforms

Since launching in December, RLUSD has steadily grown its footprint in the crypto ecosystem. It now appears on several major platforms, including Kraken, Uphold, MoonPay, CoinMENA, ArchaxEx, and Bitso. With a current market capitalization of $294 million, RLUSD ranks as the 12th largest stablecoin by market cap, having recently overtaken EURC.

With its latest integration into Aave, Ripple’s RLUSD continues to solidify its presence in decentralized finance. The move not only reinforces its DeFi capabilities but also showcases its potential in traditional financial systems through Ripple’s broader strategic actions.

We are on twitter, follow us to connect with us :- @FXCryptoNews
— FXCryptoNews (@FXCryptoNews) December 14, 2023

Backed by regulatory support and growing platform adoption, RLUSD is well-positioned for further expansion.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.