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Digital asset infrastructure provider Copper has integrated Ripple's U.S. dollar stablecoin, RLUSD, into its Stablecoin Rewards Program, allowing institutional clients to hold RLUSD within Copper's custody environment while earning rewards on the asset. The integration expands institutional access to stablecoin yield without requiring users to directly manage decentralized finance positions or move assets across external protocols. Copper said the addition of RLUSD aligns with its focus on regulated digital dollar assets, secure custody, and collateral management for professional market participants.
About RLUSD
RLUSD is issued by Ripple and is designed to maintain a one-to-one peg with the U.S. dollar. The stablecoin is backed by U.S. dollar deposits and cash equivalents, including government bond-related reserves. RLUSD is issued natively on both the XRP Ledger and Ethereum, providing users access across two major blockchain environments.
Copper's Stablecoin Rewards Program
Copper's Stablecoin Rewards Program already supports several digital dollar products, including USDC, USDe, USDtb, PYUSD, USX, and USDG. The addition of RLUSD gives institutional clients another option within the same yield framework.
Copper Chief Executive Amar Kuchinad said regulated stablecoins with secure custody and efficient collateral management are expected to play a role in institutional digital asset adoption, and that RLUSD meets Copper's standards for security and transparency.
Institutional Adoption Benefits
For Ripple, the integration places RLUSD within infrastructure used by institutions for custody, settlement, and collateral operations. Aditya Turakhia, Ripple's vice president of trading and markets, said the partnership brings regulated stablecoin liquidity into systems already used by businesses.
Institutional users typically require custody controls, risk procedures, asset segregation, and reporting before adding a new asset to their operations. Copper's support provides RLUSD access to clients that prefer to keep assets in a supervised custody environment rather than managing wallets and protocols directly.
Market Activity and Growth
RLUSD's market capitalization has moved above $1.75 billion, up from about $132 million a year earlier. This growth places RLUSD among the newer regulated stablecoins, attracting attention from institutional and exchange users.
Stablecoin growth is tracked through market capitalization, exchange deposits, trading liquidity, and custody integrations. The Copper integration adds another institutional channel at a time when exchange activity and supply growth are being monitored by market participants.
RLUSD and XRP: Distinct Functions
The expansion of RLUSD has prompted discussion about its relationship with XRP. Some market participants have questioned whether a Ripple-issued stablecoin could reduce the role of XRP in payments and liquidity. However, XRP Ledger community figures have argued that the two assets serve different functions.
RLUSD is a dollar-pegged issued asset, while XRP is the native asset of the XRP Ledger. XRP is used for transaction fees and can serve as a neutral bridge asset in swaps and liquidity routes. Issued assets such as RLUSD represent claims tied to an issuer and reserve structure, while XRP operates independently of a stablecoin backing model.
According to a post by XRPL community member Vet, issued assets like RLUSD do not replace XRP's role as a neutral swap asset. The post stated that the two assets may grow together as on-chain finance expands, because stablecoins and native bridge assets are used for different purposes.
