Experts Explain Why XRP Could Achieve Significant Profits from Ripple's RLUSD

The stablecoin pegged to the dollar by Ripple, Ripple USD (RLUSD), has spent the last six months quietly becoming one of the fastest-growing assets in the $160 billion stable value sector, although most of its issuances remain on a rival network, not the XRP Ledger. The split—95 percent of the 455 million dollars in supply currently sitting on Ethereum—is the starting point for a lively exchange over the weekend on X between XRP expert "Crypto Eri" and skeptics questioning whether Ripple's plans will ever benefit XRP Ledger (XRPL) itself. What Is the Hidden Advantage of XRP? "Ripple is a long-term player," Eri wrote. "Ripple's public statements about integrating smart contracts on the mainnet will ultimately position RLUSD on XRPL as a more competitive stablecoin, with faster and cheaper payment speeds than Ethereum." This comment was made just a few days after Ripple activated the EVM-compatible sidechain, bringing full Ethereum-style smart contract functionality to the XRPL on June 30, 2025. According to remote measurement data from the developer, more than 1,400 contracts have been deployed in the first week, and this bridge is now operational with 80 other chains through Axelar. On-chain data highlights the risks. The circulating supply of RLUSD increased by 47 percent in June alone to 455 million USD, the fastest rate among major stablecoins, with around 390 million USD currently sourced from Ethereum after expanding fourfold since January. There are only about 65 million USD left on XRPL. This imbalance has led a user to tell Eri that the utility of RLUSD "affects ETH more than XRP". She acknowledged this viewpoint—"true, so far"—but argued that demand will shift as the programmability and liquidity of XRPL deepen. Ripple's strategy is not solely dependent on the code. On June 2, the company submitted an application to the Office of the Comptroller of the Currency for a national trust bank charter. A parallel filing by its subsidiary Standard Custody & Trust seeks a master account with the Federal Reserve, so that the reserve of RLUSD could ultimately be held at the central bank instead of an agency. This timing coincides with the GENIUS Act awaiting processing, a bipartisan law that will for the first time apply a single federal regime to payment stablecoin issuance entities. While the bill's $10 billion asset threshold means RLUSD may still fall under New York's oversight at this time, this application positions Ripple to voluntarily shift to federal oversight—a move that CEO Brad Garlinghouse calls "a new standard ( and unique!) for trust in the stablecoin market." Eri emphasized the regulatory aspect in his post: "The application for a national banking license, in accordance with the GENIUS Act, ensures the main account of the Federal Reserve... enhances trust, expands financial services and cryptocurrency payment options, and eliminates the patchwork of state licenses, allowing for continued scaling at lower costs." If the rules are issued and RLUSD begins to move as requested to XRPL, the two flywheels will support the native token, analysts say. First, RLUSD transfers on XRPL will pay transaction fees in XRP, turning every dollar of stablecoin volume into increased demand for the assets that Ripple still holds in large amounts. Second, the EVM sidechain allows decentralized finance builders to tap into RLUSD liquidity without leaving the low-cost consensus layer of XRP, potentially reversing the flow of users and liquidity that has so far shifted to Ethereum. Eri argues that: "These calculations in the stable $$$$$-dollar cryptocurrency market provide the digital asset XRP with immense potential, but more time is needed to realize it." Currently, the growth of RLUSD is still driven by the DeFi economy of Ethereum and skeptics like user "sammie" asserting "it will always be like this". Eri's final answer is very brief: "Let's see. I know we will keep in touch regularly!" That brevity captures both the promise and uncertainty ahead. The technical rails have been established; licensing applications have been submitted. Whether capital, compliance, and market demand converge quickly enough to transfer billions of RLUSD to XRPL—and in turn enhance the utility of XRP—remains a billion-dollar question.