Ripple's $2.6B Stablecoin RLUSD Grows Faster on Ethereum Than XRP

RippleXRP+1.23%'s Stablecoin Story: EthereumETH+5.14% vs. XRP Ledger

Ripple CEO Brad Garlinghouse has a clear goal for RLUSD, the company's US dollar-backed stablecoin with a market cap of around $2.6 billion. He wants to see this growing asset thrive directly on the XRP Ledger (XRPL).

However, recent blockchain data reveals an interesting plot twist. The vast majority of RLUSD tokens are actually circulating on the Ethereum network instead of Ripple's home chain.

Where Does the $2.6 Billion RLUSD Supply Currently Live?

According to on-chain analytics platform DefiLlama, the distribution of RLUSD is heavily tilted toward Ethereum. Out of roughly $2.57 billion in total circulating supply, the breakdown looks like this:

• Ethereum Network: Holds about $1.72 billion (roughly two-thirds of total supply).
• XRP Ledger (XRPL): Holds about $850 million (roughly one-third of total supply).

This gap has expanded rapidly over the past month. The supply of RLUSD on Ethereum increased by about one-third during this period. Meanwhile, the XRP Ledger saw its share shrink by roughly the same amount.

Brad Garlinghouse Responds: RLUSD and XRP Are Partners, Not Competitors

Addressing discussions on social media platform X on November 3, 2026, Garlinghouse clarified how Ripple views both tokens. Replying to a community member who highlighted RLUSD's value, Garlinghouse drew a clear distinction between the two assets.

Agreed! RLUSD isn’t competing with XRP. It’s competing with other stablecoins. Use case matters, and I want those use cases running on the XRPL.

He also endorsed a post by XRP Ledger developer Vet, who explained the technical and operational differences between the assets:

• Centralized Control vs. Decentralization: Ripple directly issues RLUSD and maintains the legal authority to freeze tokens if necessary for compliance.
• Unfreezable Native Token: In contrast, nobody has the ability to freeze native XRP tokens.
• Network Demand: Every active account on the XRP Ledger requires an XRP reserve, and users must pay all network transaction fees using XRP.

Garlinghouse reinforced this point with a succinct reply: Well said, Vet. Complementary, not competitive.

This message aligns with statements Garlinghouse made at the Swell 2026 conference just days earlier. There, he firmly rejected rumors suggesting Ripple planned to abandon XRP in favor of its new stablecoin, repeating that the two tokens play complementary roles.

Why Is Ethereum Leading the RLUSD Supply Race?

Ripple has not officially explained why RLUSD supply heavily favors Ethereum. However, industry experts point to Ethereum's mature Decentralized Finance (DeFi) ecosystem.

Ethereum offers deep liquidity and popular decentralized lending platforms such as AaveAAVE+3.57%. These protocols allow users to deposit stablecoins to earn yield or use them as collateral. By contrast, the XRP Ledger does not currently feature native decentralized lending protocols.

Furthermore, Ethereum hosted the majority of RLUSD tokens right from the asset's initial rollout, giving it an early liquidity advantage.

A Brief History of the RLUSD Chain Shift

The lead between the two blockchains has flipped back and forth over the past several months:

• Late June 2026: The XRP Ledger briefly overtook Ethereum as the dominant network for RLUSD supply.
• Late August 2026: Ethereum regained top position as capital migrated back into Ethereum DeFi protocols.
• Late 2026: Ethereum expanded its majority share to two-thirds of the total market capitalization.

Strong Growth and Regulatory Foundations

Despite the supply shifting between chains, RLUSD as a whole is expanding quickly. Ripple reports that the stablecoin's total market cap has jumped more than 88% this year.

Additionally, Ripple's newly acquired national trust bank charter officially covers the cash and treasury reserves that back RLUSD, offering structural oversight for institutional users.

Past performance of digital assets or operational growth metrics do not guarantee future results. Market participants can monitor live token analytics for assets like XRP and Ethereum on regulated exchange platforms.

Key Takeaways for Crypto Holders

While Ripple leadership actively wants to bring more activity to the XRP Ledger, market demand for stablecoin yield on Ethereum keeps driving RLUSD tokens across the bridge.

As Ripple expands its bank-backed reserve structure, watching how XRPL builds out native DeFi infrastructure will be key to seeing if it can eventually reclaim stablecoin market share from Ethereum.