Ripple's RLUSD Stablecoin Launches on Aave V3, Boosting DeFi Adoption

Ripple’s US dollar-pegged stablecoin RLUSD has launched on Aave V3’s Ethereum Core Market, enabling users to supply and borrow the token with a $50 million supply cap and $5 million borrow cap. Initial activity on Aave remains low, with little lending or borrowing recorded and a deposit APY of 0%, but RLUSD’s integration is viewed as a significant step for unlocking additional DeFi liquidity and expanding institutional use. RLUSD distinguishes itself by focusing on enterprise and cross-border payment applications, having already been incorporated into Ripple Payments and used in test transactions with financial providers. Since its broader market debut in December, RLUSD has reached a market capitalization near $294 million and processed over $10 billion in transactions, indicating growing adoption and interest. The stablecoin’s entry into Aave introduces new collateral options and is expected to attract more users as liquidity incentives and yield opportunities develop. These moves come as US lawmakers consider new stablecoin regulations, positioning RLUSD as a potential competitor to established stablecoins like USDT and USDC.