Ripple Pushes RLUSD Over XRP in $1.2B Institutional Deal

In a strategic shift that's stirring conversations across both DeFi and TradFi circles, Ripple is positioning its stablecoin, RLUSD, at the heart of its $1.25 billion acquisition of Hidden Road, a prime brokerage firm clearing over $3 trillion annually. The move bypasses XRP and instead uses RLUSD as the primary collateral asset—signaling a bold pivot in Ripple’s institutional crypto strategy.

• Ripple turns to RLUSD as a cornerstone in its $1.25B Hidden Road acquisition, raising fresh questions about XRP’s evolving role.
• The stablecoin will serve as collateral across Hidden Road’s brokerage platform, bridging institutional capital with blockchain liquidity.
• This marks the first real-world use case of stablecoin-based cross-margining between traditional markets and digital assets.

RLUSD Becomes Ripple’s Institutional Trojan Horse

Ripple’s acquisition of prime broker Hidden Road has spotlighted RLUSD, a USD-pegged stablecoin launched on the XRP Ledger in December 2024. While XRP will still be used to cover post-trade transaction fees, it is RLUSD that takes center stage as the collateral asset for the platform's financial operations.

Hidden Road’s integration of RLUSD allows institutional players—ranging from banks to hedge funds—to post secure, on-chain collateral and unlock multi-asset trading across FX, derivatives, and digital assets. This opens the door to a new era of capital efficiency and compliance-ready DeFi ecosystems, without the volatility associated with traditional crypto tokens.

Far from just another stablecoin, RLUSD represents the evolving future of crypto's mainstream adoption. Built with a focus on compliance, speed, and transparency, RLUSD gives financial institutions a frictionless entry point into blockchain markets.

Ripple’s rise to prominence in the DeFi space has been marked by a consistent focus on real-world utility, regulatory alignment, and enterprise-grade solutions. With partnerships spanning central banks, payment providers, and now institutional brokers, Ripple has evolved from a cross-border payment disruptor to a cornerstone of next-gen financial infrastructure. The launch of RLUSD and strategic acquisitions like Hidden Road underscore Ripple’s growing dominance—not just in crypto, but as a bridge between traditional finance and decentralized innovation. Its layered approach, combining stablecoins, liquidity protocols, and tokenized assets, places it at the forefront of the global shift toward programmable money and digital finance.

From cross-border payments to tokenized real-world assets (RWAs), RLUSD’s role is not promotional—it's foundational. Its use in the Hidden Road deal marks a pivot to more practical, trusted tools for integrating DeFi exosystems into real-world finance. As the crypto space matures, stablecoins like RLUSD will likely be the default interface between traditional institutions and blockchain infrastructure.

Expert Opinion And Quotes

“XRP functions as a bridge asset to provide liquidity between two fiat currencies, while RLUSD serves as an on-chain fiat,” said Brad Garlinghouse, CEO of Ripple.

David Schwartz, Ripple’s CTO, echoed this, stating: “Stablecoins like RLUSD are good for XRP, not harmful. They maintain price stability and bring more institutional use cases onto the ledger.”

FAQs

What is RLUSD and how is it used in the Hidden Road deal?
RLUSD is Ripple’s USD-backed stablecoin issued on the XRP Ledger. In the Hidden Road deal, it is used as a collateral asset across the brokerage’s global platform, enabling cross-margining between traditional financial instruments and blockchain-based assets.

Why is Ripple using RLUSD instead of XRP?
Ripple is using RLUSD for its stability and regulatory alignment. While XRP still plays a role in settling fees, RLUSD is more suited for collateral purposes in institutional environments, making it ideal for bridging DeFi and traditional finance.

Are stablecoins like RLUSD the future of institutional crypto adoption?
Yes, stablecoins offer the stability, compliance, and efficiency that institutions require. With RLUSD enabling real-world use cases like cross-border payments, tokenized asset trading, and DeFi collateral, they are becoming key to mainstream blockchain adoption.

How does RLUSD support the DeFi ecosystem?
RLUSD integrates seamlessly with decentralized finance protocols, offering a stable, transparent, and fiat-pegged asset for lending, trading, and cross-chain settlements. It’s designed to meet both the liquidity demands of Web3 and the compliance needs of traditional finance.

What makes RLUSD different from other stablecoins?
Unlike algorithmic stablecoins, RLUSD is fully backed by U.S. dollars and issued by Ripple—a company with strong regulatory ties. Its integration into institutional workflows, especially through the Hidden Road platform, marks a milestone for blockchain and DeFi convergence.