Ripple XRP News: Two-Thirds of RLUSD Still Lives on Ethereum And The XRP Ledger Upgrades That Could Change That Lack Votes

On-chain data reveals that only a third of Ripple’s RLUSD stablecoin currently resides on the XRP Ledger, highlighting to holders that the company’s major expansions do not always integrate directly with the ledger.

The distribution remains uneven, with the XRP Ledger holding $862.8 million worth of RLUSD compared to $1.72 billion on Ethereum, according to Ripple’s latest attestation which recorded total circulation at $2.63 billion on October 29.

Ripple’s recent milestones should help drive RLUSD growth, following its final approval for the Ripple National Trust Bank on October 26 and a partnership signed with Robinhood a day later. However, only the Robinhood collaboration explicitly mentions the XRP Ledger for settling institutional trades through Bitstamp.

Meanwhile, upgrades native to the ledger are currently stalled, with the native lending protocol securing 19 out of the 28 required validator votes, and token vaults holding 21.

This dynamic raises questions about what Ripple has signed and why a larger portion of these developments is not landing on the XRP Ledger.

Ripple XRP News: What Did Ripple Sign Last Week?

The company secured two agreements that provide RLUSD with an affiliated bank and a major broker.

The newly obtained bank charter permits Ripple National Trust Bank to hold segregated reserves backing RLUSD, function as a collateral trustee for RLUSD holders, and deliver digital asset custody services after launching. The institution cannot accept deposits or issue loans, and RLUSD will continue to be issued by Standard Custody & Trust Company, Ripple’s New York-regulated trust company.

“For years, we’ve said crypto and banks work better together,” stated Ripple CEO Brad Garlinghouse. An official opening date has not been announced by Ripple.

The partnership with Robinhood extends beyond a simple token listing:

• RLUSD: Already live on Robinhood Chain and Bitstamp by Robinhood, with integration into the primary Robinhood app scheduled for later this year.
• XRP Ledger: Robinhood will utilize the ledger to settle institutional trades in RLUSD.
• Ripple Treasury: Robinhood is set to manage its cash, payments, and liquidity using Ripple’s treasury software.
• Ripple Prime: Already extending loans to Bitstamp across approximately 20 digital assets, with support for perpetual futures planned on the platform later this year.

“Utility is what moves stablecoins forward,” noted Johann Kerbrat, head of Robinhood Crypto. As of August, Robinhood maintained 28.6 million funded customers.

Where Does Ripple’s RLUSD Actually Live?

The majority is located on Ethereum. On Wednesday morning, the issuing account for RLUSD on the XRP Ledger reported 862.8 million outstanding tokens, whereas the Ethereum contract recorded 1.72 billion.

Consequently, the XRP Ledger accounts for roughly 33% of the $2.58 billion combined supply across both chains.

This division carries significance for XRP. Every RLUSD transaction on the XRP Ledger incurs a minor fee paid in XRP, which is permanently destroyed, and every newly created account must maintain a minimum reserve of 1 XRP. RLUSD transactions on Ethereum trigger neither mechanism.

Why Isn’t More RLUSD on the XRP Ledger?

This disparity persists partly because essential tools utilized by stablecoin users elsewhere are not yet active on the ledger. Implementing an upgrade, or amendment, requires approval from 28 out of 35 trusted validators—representing 80%—sustained for a two-week period before activation. Most institutional-focused upgrades currently fall well short of this threshold.

According to the XRPScan amendment tracker, the current status of key upgrades includes:

• fixCleanup3_4_0: Secured 33 votes and is scheduled to activate around 14:46 UTC today. This upgrade closes a loophole that occasionally allowed accounts with token-burning permissions to mint new tokens.
• Single-asset vaults: Holds 21 votes, leaving it 7 short. These vaults pool a single asset, such as RLUSD, to facilitate borrowing.
• Lending protocol: Stands at 19 votes, falling 9 short for both versions, which would enable these vaults to issue loans directly on the ledger.
• Confidential transfers: Reached 20 votes, remaining 8 short.

Until vaults and lending protocols go live, institutions seeking to lend out RLUSD find broader functionality available on Ethereum.

What Does It Mean for Ripple XRP Holders?

Ripple’s corporate business is expanding at a faster pace than the XRP Ledger’s utilization. Two additional figures from the week illustrate how XRP itself is managed:

• Ripple’s escrow: Two escrow contracts released 1 billion XRP on November 1, and Ripple re-locked 700 million on the same day, retaining 300 million.
• The ETFs: The five U.S. spot XRP funds experienced zero net flows on Tuesday, November 3, and accumulated $17.52 million over a 30-day window. These funds hold $1.46 billion, amounting to roughly 1.78% of the total market value of XRP.

Asset prices have shown no response to these updates. XRP is valued at $1.28, remaining flat over a 24-hour period between support at $1.27 and resistance at $1.30, while staying below its 50-day and 200-day EMAs of $1.3353 and $1.3631, respectively.

XRPUSDT 1D chart. Source: TradingView.

Key developments to monitor next include:

• The Robinhood app: RLUSD integration is anticipated later this year, though Ripple has not specified which chain app users will utilize to hold the stablecoin.
• Ripple National Trust Bank: An official launch date remains unannounced.
• The lending vote: Should 9 additional validators support the lending protocol, it will still require a mandatory two-week validation period at the 80% threshold prior to launch.

At present, the narrative surrounding Ripple XRP remains divided, as the company continually expands its network of banks and brokers for RLUSD while the majority of the stablecoin’s supply remains on Ethereum.