Overview

Aave users can now supply and borrow Ripple’s RLUSD stablecoin on the decentralized lending platform’s V3 Ethereum Core market.

Market Details

• The peer-to-peer loans market has a supply cap of 50 million RLUSD and a borrow cap of 5 million RLUSD.
• RLUSD is a stablecoin pegged 1:1 to the U.S. dollar, fully backed by dollar deposits and short-term U.S. Treasuries.

Why RLUSD is Significant

Security features make RLUSD appealing to institutional users. An XRP Ledger amendment in January introduced a “clawback” feature, allowing the issuer to reclaim certain tokens from users’ wallets under specific conditions.

Industry experts suggest RLUSD could alter the competitive landscape within the crypto market, potentially affecting incumbents like Tether’s USDT and Circle’s USDC. It is also expected to enhance the appeal of XRP among investors.