Ripple Expands RLUSD DeFi Utility With Aave Horizon Integration - Coinspeaker

Key Notes

• Ripple’s RLUSD has found a crucial role to play in the Aave Horizon Real World Asset (RWA) platform.
• The stablecoin would ensure that tokenized products are utilized as collateral.
• RLUSD's market capitalization is currently pegged at $85.9 million on the XRP Ledger, per data from the XRP market.

Ripple’s USD-pegged stablecoin RLUSD has secured a strong position in the Aave Horizon Real World Asset (RWA) platform, which was launched recently by Aave Labs. According to the published statement from the company, RLUSD is joining the project to enable “a new era of efficiency for on-chain finance.”

RLUSD in Aave Horizon RWA Market

Horizon is a new institutional lending platform by Aave Labs, designed to facilitate the use of tokenized products as collateral. This is another strategy of bridging the gap between Traditional Finance (TradFi) and Decentralized Finance (DeFi) systems. Ripple’s RLUSD has been integrated into this initiative as a very important component.

Reece Merrick, Managing Director of Middle East and Africa at Ripple, highlighted this feat, noting that it is “great” to see the stablecoin “play a big role” in Aave Horizon. At the core of RLUSD’s responsibilities is ensuring that tokenized products are utilized as collateral. Moreover, it would allow the free and efficient flow of liquidity across digital markets.

Together, Aave and Ripple have lauded the importance of this launch, describing it as a crucial step towards rolling out institutional-grade products into open finance. The Horizon RWA market has gone live on Ethereum, per the announcement made by Aave Labs. As a result, investors can earn yield from institutional borrowers.

Assets are first deposited and then added to specific pools of RWA available to institutional borrowers. It is worth noting that the Horizon RWA market allows liquidity providers to earn interest, with RLUSD as one of the available stablecoins. The other stablecoins on the platform are Circle’s USDC and GHO, which is owned by Aave.

Prior to this time, Aave has made a move on RLUSD. Back in April, it allowed users on its platform to supply and borrow the Ripple stablecoin. Coincidentally, the demand for the token was quite high at the time, to the extent that $76 million worth of RLUSD was being supplied daily.

Related article: XRP Futures $1 Billion OI Milestone Paves Way for Spot XRP ETF ApprovalEven Jack McDonald, senior vice president of stablecoins at Ripple, could not help but acknowledge that stablecoin growth was “exploding” at the time.

Ripple’s RLUSD Records Significant Integrations and Use Cases

Generally, the USD-pegged stablecoin has seen significant traction in the eight months of its existence. It has also recorded massive integration with top platforms across different jurisdictions. Apart from its listings on several crypto exchanges, RLUSD is recording an expansion of its use cases.

Earlier in August, Ripple announced the $200 million acquisition of stablecoin-powered payments platform Stellar Rail. This move is part of the company’s plan to expand its stablecoin infrastructure along with the use cases of its native RLUSD stablecoin.

Currently, the RLUSD stablecoin ranks second on the XRP Ledger (XRPL), clearly showing that it has outperformed some tokens in less than a year of launch. Also, its market capitalization on XRPL has reached $85.9 million with a total holder count of 35,000.

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