defi · · 2 outlets
Robinhood taps Ripple’s $2.5 billion RLUSD stablecoin despite backing rival USDG
Robinhood will offer Ripple’s $2.5 billion RLUSD stablecoin to its retail customers before the close of this year.
This development places Robinhood in a complex position, given that the firm helped establish the Global Dollar Network in 2024 to promote Paxos’s competing stablecoin, USDG.
The partnership extends beyond consumer access; Bitstamp, the crypto exchange Robinhood acquired for $200 million in June, will utilize RLUSD for settlements on the XRP Ledger.
Furthermore, Robinhood intends to adopt Ripple’s software to manage its own treasury operations, including cash management, payments, and forecasting.
Monica Long, president of Ripple, stated, “From bringing RLUSD to retail and institutional markets to helping Robinhood manage its own treasury operations, this partnership reflects growing institutional demand for integrated solutions that support customer-facing offerings and core financial operations.”
RLUSD, which launched in December 2024, currently boasts a market capitalization exceeding $2.5 billion.
The collaboration also involves Ripple Prime, which already offers Bitstamp lending and margin financing for around 20 digital assets, and the two entities plan to introduce perpetual futures trading later this year.
The Global Dollar Network, founded in 2024, incentivizes members to promote USDG, yet Robinhood's engagement with Ripple demonstrates that such incentives do not prevent participation in offering rival stablecoins.
This strategic move by Robinhood underscores a broader trend where institutional participants are seeking integrated solutions that support both front-end customer offerings and critical back-office financial functions.
Why it matters
This move places Robinhood in a complex regulatory position, as it previously promoted Paxos's competing USDG stablecoin through the Global Dollar Network. Regulators and exchanges are closely watching how major platforms manage competing stablecoins as institutional demand for integrated solutions grows.
Reported by CoinDesk and cryptopotato.com.
