Ripple is signaling a possible long-term shift away from Ethereum for its U.S. dollar stablecoin, RLUSD, as institutional payment activity evolves. According to Ripple executive Reece Merrick, usage patterns may increasingly favor the XRP Ledger as organizations prioritize faster and cheaper settlement rails.
Currently, Ethereum hosts most RLUSD trading and payment flows. However, Ripple suggests this balance may change over time. Merrick said, according to the interview, that institutions are reassessing blockchain infrastructure based on performance rather than legacy dominance.
Moreover, Ripple linked rising RLUSD adoption to stronger regulatory clarity in the Middle East. The company said demand accelerated after receiving approvals from regional financial regulators. These approvals allow RLUSD to operate as a recognized U.S. dollar-backed stablecoin within regulated financial zones.
According to Merrick, regulatory certainty has encouraged institutions to move beyond pilot programs. Firms now view stablecoins as functional settlement tools instead of experimental products. This shift has supported wider RLUSD integration across cross-border payment operations.
Regulatory Clarity Strengthens Institutional Adoption
Ripple disclosed it has processed over $90 billion in payments globally. The company introduced RLUSD after enterprise clients requested stablecoin-based U.S. dollar payouts. The stablecoin’s market value currently stands at about $1.3 billion, reflecting growing institutional usage.
Additionally, Ripple emphasized that compliance clarity remains critical for large organizations. Merrick noted, according to Ripple, that institutions require regulatory confidence before deploying capital at scale. Middle East approvals provided that assurance, enabling broader RLUSD deployment.
Ripple believes this regulatory framework will continue supporting adoption. Institutions now operate with clearer guidance on settlement and compliance. Consequently, RLUSD usage has expanded across more enterprise payment corridors.
Institutions Quietly Pull RLUSD Activity from Ethereum
Ripple acknowledged that Ethereum still accounts for over 70% of global stablecoin activity. This dominance influenced RLUSD’s launch on both Ethereum and the XRP Ledger. Even so, distribution trends are already shifting.
Currently, about 30% to 35% of RLUSD supply resides on the XRP Ledger. The remaining supply continues operating on Ethereum. According to Merrick, institutions are gradually reallocating activity after experiencing faster settlement performance.
Transactions on the XRP Ledger typically settle within seconds and cost fractions of a cent. By contrast, Ethereum fees fluctuate during congestion. Consequently, Ripple expects institutional volume to migrate steadily toward the XRP Ledger.
$40 Million RLUSD Transfer Fuels Market Speculation
Ripple’s stablecoin unit recently injected $40 million worth of RLUSD into the market. The funds moved through two separate transactions of $20 million each. Both transfers were sent to an address linked to Gemini, a major U.S. cryptocurrency exchange.
As a result, the receiving wallet now holds approximately 98.3 million RLUSD. This concentration has drawn attention across the XRP community. Market participants are closely watching for signals tied to liquidity provisioning or expanded exchange availability.
Ripple has not publicly detailed the purpose of the transfers. However, the timing aligns with rising institutional interest in RLUSD. The movement has added momentum to expectations of increased stablecoin activity.
Treasury Operations Accelerate XRP Ledger Usage
Ripple also highlighted growing enterprise demand following its acquisition of treasury management firm GTreasury. That firm supports global companies managing trillions of dollars across internal entities. Ripple reported heightened interest after the acquisition.
Furthermore, Ripple noted that blockchain-based transfers allow continuous fund movement. Businesses can operate 24 hours a day, including weekends. According to Merrick, this real-time settlement capability supports liquidity efficiency and operational planning.
Ripple reiterated that the XRP Ledger was built specifically for payments and cross-border value transfer. Settlements typically complete within two to three seconds. According to Merrick, RLUSD activity on the XRP Ledger may eventually surpass Ethereum usage as institutions focus on cost and speed advantages.