Ripple’s RLUSD Stablecoin Now Available for Lending and Borrowing on Aave V3 Ethereum Market
Aave users can now supply and borrow Ripple’s RLUSD stablecoin on the platform’s V3 Ethereum Core market, according to an announcement posted by Aave on X this Monday.
The decentralized lending platform has set a 50 million RLUSD supply cap and a 5 million RLUSD borrow cap for the peer-to-peer lending market.
RLUSD, which is pegged 1:1 to the U.S. dollar, operates across both the XRP Ledger and Ethereum blockchains. It is fully collateralized by U.S. dollar deposits, short-term U.S. Treasuries, and cash equivalents, ensuring each token is matched by an equivalent fiat value.
One of the key selling points of RLUSD is its enhanced security features, which are tailored to appeal to institutional investors. A January amendment to the XRP Ledger introduced a “clawback” mechanism, enabling the issuer to reclaim RLUSD tokens from users’ wallets under specific circumstances.
Industry experts suggest that RLUSD could shake up the stablecoin landscape, positioning itself as a strong competitor to established players like Tether’s USDT and Circle’s USDC. The move also reinforces XRP’s position, making it more attractive to investors.
