Ripple is throwing its weight behind a multichain future. A major component of this strategy is putting its real-world asset, RLUSD, on Ethereum. Aave, the popular decentralized lending protocol witnessed a major development on April 21. This allowed RLUSD to go live on its V3 Ethereum Core market. Together with this integration, users can now passively earn interest by lending RLUSD on the platform.
At present, RLUSD is not a usable collateral on Aave, and maximum borrowing is limited to $10 million. According to available data, there are 294 million RLUSD tokens currently circulating. Of these, 94 million live on the XRP Ledger, and 200 million live on Ethereum.
Ripple uses a burn-and-mint process to keep RLUSD pegged 1:1 to the U.S. dollar. In particular, Ripple performed a transfer of 27 million RLUSD tokens from Ethereum to the XRP Ledger, demonstrating the cross-chain capability.
Moreover, within four days of its launch on Aave, $76 million RLUSD was supplied, showcasing robust early demand. This fast-paced expansion, dubbed “The Roanoke Way,” adds to RLUSD’s combined market cap, which is now nearing $300 million.
Currently, about 70% of all RLUSD is minted on Ethereum. By launching RLUSD on Ethereum, Ripple not only establishes RLUSD’s instant liquidity but taps into a much larger and wider user adoption. Ripple continues to focus on ecosystem expansion. In doing so, this decision links them to an increasingly larger pool of users in the growing decentralized finance (DeFi) ecosystem.
