Ripple Expands RLUSD Liquidity with New XRP Ledger Functionality

• Ripple Enables RLUSD on XRP Ledger AMM Pools
• New functionality increases liquidity and regulatory security
• Stablecoin already exceeds US$ 100 million in capitalization

The XRP Ledger (XRPL) ecosystem has received a major update with the activation of the AMMClawback amendment, allowing token issuers to reclaim assets even after they have been transferred. This new feature directly impacts Ripple’s RLUSD stablecoin, which can now be used in Automated Market Maker (AMM) pools, expanding its liquidity and reach in the cryptocurrency market.

The AMMClawback amendment is now live on the mainnet: https://t.co/GUKD32LdL9 https://t.co/57738PlM98 pic.twitter.com/HKrUhJb2MP

— XRPScan (@xrpscan) January 30, 2025

Prior to this change, RLUSD was restricted to trading on centralized exchanges, as its clawback functionality prevented it from being included in AMM pools. With the activation of the amendment, the barrier has been removed, and the token can now be traded in a decentralized manner within the XRPL itself. The expectation is that this opening will significantly increase its adoption, making it a more accessible alternative for different investor profiles.

At the time of publication, the price of XRP was quoted at $3,04 with a drop of 2.7% in the last 24 hours.

In addition to boosting liquidity, the new functionality also reinforces Ripple’s commitment to regulatory compliance. The ability to recover tokens tied to irregular transactions or suspicious addresses adds an additional layer of security to the system, aligning the XRP Ledger with standards adopted by other networks that prioritize transparency and asset control.

The amendment was widely supported by the community and was quickly implemented on the mainnet. Ripple CTO David Schwartz highlighted the importance of the change, pointing out that the previous limitation restricted the potential of RLUSD and other tokens that had clawback functionality. With this update, the scenario changes completely, allowing issuers to use liquidity pools without compromising the security of the network.

The initial impact of the new feature can already be seen in the pools’ first liquidity data. Within a few hours of activation, the RLUSD/XRP pool recorded a significant volume, surpassing the $400 locked mark. This growth reinforces the market’s interest in the stablecoin and signals a positive trend for its adoption in decentralized finance (DeFi) solutions.

RLUSD currently has a market cap of close to $100 million, with a circulating supply of approximately 97,5 million tokens. This significant growth in a short period of time reflects the confidence of investors in the project and the financial backing provided by Ripple. According to Jack McDonald, the company’s executive, the stablecoin is fully backed by deposits in dollars, short-term government bonds, and other highly liquid assets. This model ensures that the stablecoin is always covered by reserves that exceed the circulating supply, strengthening its stability in the market.

A little over a month since $RLUSD's launch, we've seen amazing traction reaching ~$100M in market cap. As previously committed, we'll be publishing a monthly independent attestation for RLUSD, in compliance with the highest regulatory standards.

A few points to keep in mind:…

— Jack McDonald (@_JackMcDonald_) January 30, 2025

The XRP Ledger upgrade marks a strategic step forward for Ripple as it seeks to expand RLUSD’s presence in institutional markets and global payments infrastructure. With increased liquidity and enhanced security, the stablecoin is positioning itself as an even more relevant competitor in the digital asset space.