- Ripple announced that it is expanding its presence on multiple chains with Wormhole’s Native Token Transfers (NTT).
- RLUSD will use the burning and minting process, which helps it maintain a 1:1 ratio with the US dollar.
- The announcement comes amid growth in the stablecoin market overall thanks to increased regulatory clarity.
On June 4, Ripple, the leading blockchain infrastructure company, announced a multi-chain expansion of its native stablecoin, RLUSD, using Wormhole’s Native Token Transfers (NTT).
Launching in 2024, this announcement marks a major expansion for RLUSD. Stablecoins are designed to meet different purposes, such as Cross-border payments, institutional on/offs, and tokenization use cases. Integrating the cross-chain bridge will increase the presence of Ripple’s native stablecoin on various Ethereum Layer 2 networks and related chains.
Wormhole supports multi-chain payment for RLUSD
Wormhole is a major cross-chain bridge, used to connect different blockchain networks. Ripple will use Wormhole’s native token transfers (NTT). This is different from other bridges that create wrapped versions of tokens. The NTT standard will allow Ripple to issue and control the RLUSD stablecoin directly on each blockchain.
On the Wormhole Bridge, users can make RLUSD transactions from one blockchain to another blockchain using the system, where tokens are burned on the source chain and issued on the destination chain. This type of mechanism allows a stablecoin to maintain its backing with the US dollar, Treasury securities, and cash equivalents. RLUSD is also known for complying with digital asset regulation with great transparency.
The integration will improve liquidity through low-cost transactions. This will help avoid problems of fragmented or synthetic assets by allowing the native movement of RLUSD across different blockchains.
Stablecoin market rises as regulatory clarity increases
Recent regulatory developments around the digital sector, e.g The law of genius and the CLARITY Act, helped the stablecoin market grow. according to challengeHowever, the cumulative market capitalization of stablecoins has risen to around $320 billion.
RLUSD was launched in December 2024 on the XRP Ledger and the Ethereum network. It has grown steadily due to its regulated status. As of now, the stablecoin has $1.74 billion in total market capitalization with a 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 stablecoin It also features supervision from the trust company of the New York Department of Financial Services (NYDFS). Ripple has also applied for a federal OCC charter for stronger dual regulation.
Recently, MasterCard also revealed its plan to increase its integration with… XRP Ledger (XRPL) In order to enhance support for settlement capabilities.
