Ripple partners with Wormhole to bring RLUSD Stablecoin to Ethereum Layer 2s
December 15, 2025
Ripple made an announcement on Monday regarding their testing of the RLUSD stablecoin on Ethereum Layer 2 blockchains utilizing Wormhole’s cross-chain technology. The testing is focused on Optimism, Coinbase’s Base, Kraken’s Ink, and Uniswap’s Unichain as a precursor to a wider deployment slated for 2026. Since its inception in December 2024 on Ethereum and XRP Ledger, RLUSD has seen its total supply grow to over $1.3 billion.
The collaboration between Ripple and Wormhole involves the implementation of the Native Token Transfers standard to trial RLUSD’s functionality across the four Layer 2 networks. This standard allows for the seamless movement of RLUSD between chains without the need for wrapping or synthetic assets, ensuring liquidity and control within regulatory guidelines. Regulatory approval from the New York Department of Financial Services is pending prior to the public launch next year.
Jack McDonald, Ripple’s senior vice president of stablecoins, noted that this expansion positions RLUSD as the first U.S. trust-regulated stablecoin on the Layer 2 networks involved. The integration also encompasses wrapped XRP (wXRP), enabling users to exchange between wXRP and RLUSD within DeFi applications on supported chains. Issued under NYDFS Trust Charter, RLUSD operates on both Ethereum and XRP Ledger.
Recent conditional approval from the Office of the Comptroller of the Currency for a national trust bank charter positions Ripple for further advancements. Full OCC approval would establish RLUSD as the first stablecoin under dual state and federal regulatory oversight. McDonald emphasized the pivotal role stablecoins play in facilitating the adoption of DeFi and institutional participation, positioning RLUSD as a reliable gateway into the broader digital asset economy.
This latest Wormhole integration marks Ripple’s second significant step in expanding XRP Ledger’s multichain interoperability through the protocol. The Layer 2 expansion provides RLUSD with the opportunity to compete more aggressively with established stablecoins like USDC and USDT within the rapidly expanding decentralized finance sector.
The allure of Layer 2 networks lies in their ability to offer quicker transaction speeds and lower costs compared to the Ethereum mainnet, making them appealing for DeFi applications, cross-border transactions, and business-to-business dealings. Ripple’s recent funding success, along with the growth of the stablecoin market surpassing $300 billion, reflects the increasing acceptance of digital assets in the traditional finance realm.
The passage of the GENIUS Act in July ushered in regulatory clarity, accelerating the adoption of institutional stablecoins across banking and payments sectors. Ripple’s unique regulatory approach, combining NYDFS oversight with pending OCC approval, sets RLUSD apart from competitors operating under single regulatory frameworks. By implementing a multichain strategy, Ripple aims to position RLUSD strategically to meet demand within institutional finance and decentralized protocols.
A recent development saw Singapore’s central bank expanding Ripple’s license to utilize XRP and RLUSD in payment services, indicative of the growing international regulatory acceptance of these digital assets. This progress underscores Ripple’s commitment to innovation and regulatory compliance in facilitating the seamless integration of RLUSD into the evolving financial landscape.
