The cryptocurrency market has recently witnessed a remarkable surge in XRP, with its price climbing 26% in just 24 hours. This rally comes amid growing optimism around Ripple’s regulatory progress and the launch of its new USD-pegged stablecoin, RLUSD. As XRP solidifies its position as the third-largest cryptocurrency by market cap, surpassing BNB and SOL, investors are asking: Could this momentum lead to an XRP ETF as early as 2025?
How RLUSD Is Driving XRP Adoption and Demand
Over the weekend, rumors spread that the New York Department of Financial Services (NYDFS)—the state’s top financial regulator—may soon approve Ripple’s stablecoin, RLUSD. While official confirmation is still pending, the mere prospect has ignited excitement across the crypto community.
Crypto entrepreneur Max Avery highlighted on X (formerly Twitter) how RLUSD could transform the XRP Ledger (XRPL) ecosystem and significantly boost XRP’s utility and value. Let’s break down the key mechanisms:
1. Increased On-Chain Activity
Every RLUSD transaction occurs on the XRPL blockchain, where XRP is the native asset. It’s used to pay network fees and act as a bridge currency between different assets. More RLUSD transactions mean more activity on XRPL—and greater demand for XRP.
2. XRP as a Cross-Asset Bridge
XRPL excels at cross-currency transfers. When users convert between RLUSD and other digital assets, XRP often serves as the intermediary due to its speed and low cost. As RLUSD adoption grows, so will the need for XRP in these bridging operations.
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3. Enhanced Liquidity and Institutional Appeal
The introduction of RLUSD injects fresh liquidity into XRPL. Higher liquidity attracts traders, market makers, and institutional players who rely on stable trading pairs. These participants often hold XRP to cover transaction costs, creating a self-reinforcing cycle of adoption, usage, and demand.
4. Integration with DeFi Ecosystems
RLUSD opens doors for deeper decentralized finance (DeFi) integration on XRPL. From lending protocols to yield-generating dApps, RLUSD can serve as a stable base layer. In turn, XRP will power these applications—either through transaction fees or as collateral—expanding its real-world use cases.
5. Market Sentiment and Speculative Interest
The launch of a major stablecoin by Ripple signals confidence in the XRPL ecosystem. Just as USDT and USDC elevated Ethereum and Tron, RLUSD could position XRPL as a go-to network for fast, low-cost global payments. This perception boosts investor sentiment and draws speculative capital toward XRP.
6. Lowering the Barrier to Entry
Stablecoins are often the first on-ramp for new crypto users. RLUSD provides a familiar, fiat-pegged entry point into the XRPL ecosystem, making it easier for newcomers to engage with decentralized applications, wallets, and services—all while using XRP behind the scenes.
7. Deflationary Pressure via XRP Burn
Here’s a powerful detail: a small amount of XRP is destroyed with every transaction on XRPL, including those involving RLUSD. As transaction volume rises with increased RLUSD usage, more XRP is gradually removed from circulation. Over time, this deflationary mechanism enhances scarcity, potentially supporting long-term price appreciation.
8. Strengthening Ripple’s Ecosystem Moat
If RLUSD gains traction in remittances and cross-border payments—a core focus for Ripple—it could become a default settlement layer on XRPL. This would further entrench XRP’s role in global finance infrastructure.
“RLUSD isn’t just another stablecoin—it’s a catalyst for ecosystem-wide growth,” says industry analysts tracking Ripple’s developments.
Could an XRP ETF Launch in 2025?
Amid this bullish momentum, one question dominates investor discussions: Will we see an XRP ETF approved by 2025?
Ripple CEO Brad Garlinghouse has expressed strong optimism. In a June interview, he stated he “fully expects” an XRP ETF to launch in 2025, citing growing institutional interest and regulatory clarity.
Current Status of XRP ETF Applications
As of now, three major asset managers—Bitwise, 21Shares, and Canary Capital—have filed S-1 registration forms with the U.S. Securities and Exchange Commission (SEC) for spot XRP ETFs. However, none have yet been published in the Federal Register, which marks the formal start of the SEC’s review process.
Still, the pace of crypto ETF approvals has accelerated dramatically:
- Bitcoin spot ETFs launched in early 2024 after years of resistance.
- Ethereum ETFs followed shortly after.
- Now, filings extend to Solana, Litecoin, and even multi-asset crypto indexes.
Nate Geraci, president of ETF Store, noted:
“A year ago, Bitcoin ETFs seemed impossible. Today, we’re looking at a future where investors can build diversified crypto portfolios through ETFs—including XRP.”
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XRP Breaks $2: A New Milestone
Fuelled by RLUSD speculation and ETF hopes, XRP has broken above $2**, reaching **$2.38218 at the time of writing—a staggering 365% increase over one month.
This surge reflects not just short-term hype but a broader shift in market perception:
- From speculative token to foundational payment rail.
- From regulatory uncertainty to potential clarity.
- From niche use case to scalable global finance solution.
Frequently Asked Questions (FAQ)
Q: What is RLUSD?
A: RLUSD is Ripple’s newly launched U.S. dollar-pegged stablecoin designed to operate on the XRP Ledger. It aims to facilitate fast, low-cost cross-border payments and enhance liquidity within the XRPL ecosystem.
Q: How does RLUSD affect XRP’s price?
A: RLUSD increases on-chain activity on XRPL, driving demand for XRP as a fee payment and bridging asset. Additionally, transaction fees burn small amounts of XRP, creating deflationary pressure that may support long-term value appreciation.
Q: Is RLUSD already approved by NYDFS?
A: As of now, there is no official confirmation from NYDFS regarding approval. Reports suggesting approval are based on rumors and have not been verified by regulatory authorities.
Q: When might an XRP ETF be approved?
A: While no timeline is guaranteed, Ripple’s CEO Brad Garlinghouse predicts 2025 could see an approval. The process depends on SEC review timelines and broader regulatory trends in crypto asset classification.
Q: Can I buy RLUSD now?
A: RLUSD is expected to roll out gradually following regulatory clearances. Availability will depend on exchange listings and jurisdictional compliance.
Q: Why is XRP rising so fast?
A: Key drivers include anticipation around RLUSD adoption, progress toward resolving SEC litigation, rising institutional interest, and growing speculation about an upcoming ETF.
Final Outlook: A Turning Point for XRP?
The convergence of RLUSD’s ecosystem impact, regulatory momentum, and ETF speculation suggests 2025 could be a pivotal year for XRP.
While challenges remain—especially around SEC oversight—the trajectory points toward greater legitimacy and adoption. If RLUSD gains widespread use and an ETF receives approval, XRP could transition from a misunderstood asset to a cornerstone of the digital economy.
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As always, investors should conduct thorough research and assess their risk tolerance before entering volatile markets like cryptocurrency. But one thing is clear: XRP is no longer flying under the radar.
Keywords: XRP, RLUSD, XRP ETF 2025, Ripple stablecoin, XRPL ecosystem, XRP price prediction, stablecoin adoption, crypto ETF