RLUSD Stablecoin from Ripple Now Active on Aave V3 Ethereum Market

Ripple’s RLUSD Stablecoin Launches on Aave V3 Ethereum Market for Lending and Borrowing

Ripple’s RLUSD stablecoin is now available for lending and borrowing on Aave’s V3 Ethereum Core market, Aave announced in a post on X this Monday.

The decentralized lending platform has established a 50 million RLUSD supply cap and a 5 million RLUSD borrow cap for the new stablecoin offering.

RLUSD is a U.S. dollar-pegged stablecoin that operates on both the XRP Ledger and Ethereum blockchains. It is fully backed by a mix of U.S. dollar deposits, short-term U.S. Treasuries, and cash equivalents, ensuring the stablecoin maintains its 1:1 peg with the dollar.

A key feature of RLUSD is its enhanced security, designed with institutional users in mind. The XRP Ledger introduced a “clawback” mechanism in January, allowing the issuer to retrieve RLUSD tokens from user wallets under specific conditions.

Experts believe RLUSD could disrupt the stablecoin market, challenging dominant players like Tether’s USDT and Circle’s USDC. The launch is also expected to increase interest in XRP, enhancing its appeal to investors.