Ripple’s RLUSD Stablecoin Enters Testing Phase on Ethereum Layer 2 Networks

Ripple just fired a shot across the stablecoin bow. The payments giant is now testing its long-anticipated RLUSD stablecoin—not on its own XRP Ledger, but on Ethereum's bustling Layer 2 networks. This isn't a quiet experiment; it's a strategic move into the heart of decentralized finance's most active arena.

Why Layer 2s Are the New Battleground

Forget the congested and costly Ethereum mainnet. The real action has shifted to its scaling solutions—networks like Arbitrum, Optimism, and Base. By deploying RLUSD here first, Ripple is targeting the developers and users who actually build and use DeFi applications daily. It's a direct play for liquidity and relevance, bypassing the slower, more traditional corridors of finance.

A Calculated Entry into a Crowded Field

The stablecoin market is dominated by giants like Tether's USDT and Circle's USDC. Ripple's entry with RLUSD is a bold challenge, betting that its brand recognition and existing enterprise relationships can carve out a meaningful slice of the pie. The test phase will be crucial for proving its technical reliability and security—the bedrock of any stablecoin's trust.

What This Means for the XRP Army

Don't mistake this for abandoning the XRP Ledger. This is a multi-chain strategy. Success on Ethereum L2s could drive significant cross-chain liquidity, potentially benefiting the entire Ripple ecosystem. It's a hedge and an expansion, showing that even blockchain veterans need to play where the users are.

Ripple's move signals that the stablecoin wars are entering a new, more technical phase. It's no longer just about who has the biggest reserves—it's about who can integrate seamlessly into the digital economy's plumbing. And let's be honest, in a world where 'yield' is often just a fancy word for 'complicated risk,' a simple, fast, and reliable stablecoin might be the most radical innovation of all.

TLDR

• Ripple is testing its RLUSD stablecoin on four Ethereum Layer 2 networks: Optimism, Base, Ink, and Unichain
• The expansion uses Wormhole’s Native Token Transfers standard to move RLUSD across chains without creating wrapped versions
• RLUSD launched in December 2024 and currently has a market cap of $1.3 billion
• Full rollout on these networks is planned for 2026 pending regulatory approval
• The stablecoin operates under a New York trust charter and Ripple has applied for a federal charter

Ripple Labs announced plans to test its RLUSD stablecoin on four ethereum Layer 2 blockchains. The pilot program will include Optimism, Base, Ink, and Unichain.

RLUSD is expanding to LAYER 2s using @wormhole’s NTT standard for native, secure transfers and will become the first U.S.-based, trust-regulated stablecoin on @Optimism, @Base, @Inkonchain and @Unichain: https://t.co/ju9KyoOIBa

This will enhance utility for XRP and RLUSD by…

— Ripple (@Ripple) December 15, 2025

The company launched RLUSD in December 2024 on the XRP Ledger and Ethereum mainnet. The stablecoin currently has a market capitalization of $1.3 billion according to CoinGecko data.

Ripple partnered with Wormhole for the expansion. Wormhole is a crosschain interoperability protocol that enables assets to MOVE between different blockchains.

The pilot uses Wormhole’s Native Token Transfers standard. This technology allows RLUSD to move across blockchains as the actual token rather than a wrapped copy.

In traditional multichain setups, tokens get locked on their original blockchain while wrapped versions are minted elsewhere. The Native Token Transfers approach burns RLUSD on one chain and mints it natively on another.

This method maintains a single version of RLUSD across all blockchains. Ripple retains ownership of the contracts on each network.

Regulatory Framework and Future Plans

RLUSD operates under a New York Department of Financial Services Trust Company Charter. This charter provides state-level regulatory oversight.

Ripple has also applied for a federal trust bank charter from the Office of the Comptroller of the Currency. This WOULD add federal oversight to the stablecoin’s regulatory framework.

Jack McDonald is senior vice president of stablecoins at Ripple. He stated that RLUSD is the first US Trust Regulated stablecoin on these Layer 2 networks.

The full commercial launch on these networks is scheduled for 2026. The rollout requires final regulatory approval before proceeding.

Ripple plans to expand RLUSD to more blockchain networks next year. The company has not specified which additional chains will be included.

RLUSD ranks behind the top three stablecoins by market cap. Tether’s USDT leads with $186 billion, Circle’s USDC has $78 billion, and Sky Protocol’s USDS holds $9.8 billion.

The stablecoin has gained adoption among retail users. Integrations include payment platform Transak and self-custodial wallets like Xaman.

The expansion into Ethereum Layer 2 networks represents a shift from RLUSD’s initial single-chain and dual-chain approach. Ripple stated the move is part of serving institutional finance and the onchain economy where demand exists.