- Ripple has announced that it is expanding its presence on multiple blockchains using Wormhole Native Token Transfers (NTT).
- RLUSD will use the burn-and-mint method, which enables it to have a 1:1 ratio with the USD.
- The announcement comes amid growth in the overall stablecoin market due to the successful development of regulations.
On June 4, Ripple, leading blockchain infrastructure, announced Multi-chain development of the native stablecoin, RLUSD, using the Wormhole of Native Token Transfers (NTT).
After its launch in 2024, this announcement is a major expansion for RLUSD. Stablecoin is designed to achieve different goals, such as cross-border payments, on/off-ramp entities, and token use cases. The cross-bridge integration will expand the availability of Ripple’s stablecoin on various Ethereum Layer 2 and related chains.
Wormhole Supports Multi-Chain Push for RLUSD
A wormhole is a large communication bridge, which is used to connect different blockchain networks. Ripple will use Wormhole’s Native Token Transfers (NTT). This is different from other bridges that generate wrapped tokens. The NTT standard will allow Ripple to issue and manage its RLUSD stablecoin directly on any blockchain.
On the Wormhole bridge, users can transfer RLUSD from one blockchain to another blockchain using a system, where tokens are burned on the source chain and released on the destination chain. This type of mechanism allows the stablecoin to remain backed by USD, Treasury securities, and currency equivalents. RLUSD is also known for its digital compliance and transparency.
The combination makes for an affordable investment. This will help avoid the problems of distributed or artificial resources by allowing the movement of RLUSD across different blockchains.
The Stablecoin Market Is Growing With Regulatory Clarity
Recent developments in digital sector management, viz GENIUS Act and the CLARITY Act, have helped the stablecoin market grow. According to Try itthe market size of stablecoins has risen to about $320 billion.
RLUSD was launched in December 2024 on the XRP Ledger and the Ethereum network. It has grown slowly because of its control. To date, the stablecoin holds $1.74 billion in market capitalization with its presence on the XRP Ledger and the Ethereum blockchain network, according torwa.xyz.
RLUSD is one of the most regulated stablecoins in the market. Many organizations are planning to integrate stablecoins to improve cross-border transactions. Ripple’s stablecoin also represents oversight from New York’s Department of Financial Services (NYDFS) trust company. Ripple has also applied for a federal OCC filing for dual power rules.
Recently, Mastercard also revealed its plans to expand its integration with the XRP Ledger (XRPL) to increase access to health care.
