USDC Launches on XRPL as Stablecoins Enhance Ripple’s Payment Ecosystem

Key Takeaways

• USDC is now available natively on the XRP Ledger (XRPL).
• Stablecoins are rapidly gaining traction on XRPL.
• They bring new liquidity options to Ripple’s interbank payment network.

USDC has gone live on the XRP Ledger (XRPL), representing yet another blockchain conquest for Circle’s dollar-pegged stablecoin, now available natively on 21 Layer 1 and Layer 2 chains.

Meanwhile, the arrival of the world’s second-largest stablecoin by market capitalization presents new opportunities for Ripple’s payment infrastructure.

Stablecoins on XRPL

The history of stablecoins on XRPL can be traced back to its earliest design in 2012. But their prominence has grown substantially in recent years.

Long before the term “stablecoin” became commonplace, XRPL was one of the first blockchain networks to support tokenized representations of fiat currencies via its IOU system .

Users like Bitstamp and Gatehub used this system to issue a stable-value token using the trust line and gateway model. 

However, IOUs weren’t true stablecoins in the modern sense. They still depended on trust that the issuer would repay the debt, rather than transparent collateralization.

Ripple’s Evolving Technology

As coins like USDt and USDC became more popular, Ripple adjusted to accommodate the technology. For example, the company developed new token standards and enhanced compliance layers.

In April 2024, Ripple announced plans to release its dollar-pegged stablecoin backed by bank deposits and U.S. Treasuries. 

Launched in December of that year, RLUSD established XRPL as an increasingly popular tokenization platform. 

Meanwhile, although the network wasn’t originally designed for Ethereum-style smart contracts, stablecoins and the introduction of native automated market makers (AMMs) have fostered an emerging DeFi scene.

Implications for RippleNet

The arrival of stablecoins on XRPL could have significant implications for Ripple’s interbank payment network, RippleNet.

Although it doesn’t always rely on XRPL to process transactions, RippleNet uses XRP as a bridge asset in its On-Demand Liquidity (ODL) service.

If stablecoins gain traction on XRPL, they could expand the pool of digital assets available for liquidity, especially for fiat-denominated corridors where XRP faces regulatory or market resistance.

Between RLUSD and USDC, new liquidity options could make RippleNet more flexible and attractive to institutions.

However, if stablecoins become highly liquid and trusted, some institutions might prefer them over XRP, reducing XRP’s role as a bridge asset.