Coinbase, a leading US-based cryptocurrency exchange, has expanded its offerings by introducing the Ripple USD (RLUSD) stablecoin for both individual and institutional clients. RLUSD is now available across its Prime and Exchange platforms, including its standard application. This stablecoin can be converted at a 1:1 ratio with the US dollar on the XRP Ledger, Ethereum, and Base networks.
Strategic Partnership with Ripple
This integration signals a shift in the relationship between Coinbase and Ripple towards a more direct commercial partnership. Notably, RLUSD liquidity on the Base blockchain will be supported directly by the issuer, suggesting a deeper collaboration beyond mere technical integration.
Ripple is known for its cross-border payment solutions and corporate financial products. Unlike stablecoins like USDT that target retail use, RLUSD caters to business and institutional requirements, achieving a market capitalization of $2.4 billion. Ripple’s management sees a clear institutional demand for compliant, high-quality stablecoins, though access has been limited by platform constraints.
Ripple executive Jack McDonald emphasized, “Institutional interest in regulatory-compliant, high-quality stablecoins is clear, but access is limited to platforms already used and trusted by institutions.”
Increased Competition for Kraken
The listing of RLUSD on Coinbase introduces new competition for Kraken, which has primarily led the regulated RLUSD-dollar pairs in the US market. Kraken has achieved a daily trading volume slightly above $225,000 in RLUSD/USD and RLUSD/USDC pairs.
Coinbase’s robust institutional infrastructure could alter this landscape, particularly with participation from US-based professional investors and corporate clients. A broader user base and expanded dollar-based usage of RLUSD are anticipated.
Coinbase Institutional’s Brett Tejpaul described the integration as “part of our efforts to establish a secure, compliant, and unified trading environment.”
Regulatory Approvals Coincide with Listing
Coinbase’s decision to list RLUSD coincides with the US Office of the Comptroller of the Currency (OCC) granting approval for Ripple’s National Trust Bank. This entity will operate under federal banking regulations.
Moody’s has assigned RLUSD an A2/P1 investment rating, reflecting the quality of its reserves managed by BNY Mellon, a renowned institution in global custodian and asset services.
From Tensions to Collaboration
This development marks the end of a previously tense period between Ripple and Coinbase. Following the SEC’s lawsuit against Ripple in 2020, Coinbase swiftly halted XRP trading, only to resume it nearly three years later.
The expansion of RLUSD in the US market is not confined to Coinbase. Plans are in place to integrate the stablecoin with Robinhood, which boasts 28.6 million customers, by the end of the year. RLUSD is also expected to be incorporated into the B2B platform C2FO for real-time settlements.
