Coinbase Integrates Ripple’s RLUSD Across XRP Ledger, Base and Ethereum Networks

Ripple has rolled out its RLUSD stablecoin on Coinbase for both retail and institutional clients, launching the dollar-backed token on three blockchains as the company expands distribution through major financial platforms. Meanwhile, users will be able to access RLUSD via Coinbase Prime, Coinbase Exchange, and the Coinbase retail app starting Wednesday, the press release stated. Under the deal, Coinbase supports trading, custody, and conversion of US dollars or other eligible dollar-denominated stablecoins at a 1:1 ratio. 

Coinbase Plans to Expand RLUSD Access Through Retail and Institutional Platforms 

As per the press release, the launch will be made possible on the XRP Ledger, Ethereum, and the Base blockchain by Coinbase. The plan is that the stablecoin will be made available to Global Exchange customers at a future date for use as collateral, but neither company specified a timeline for that. However, retail customers will be able to trade and hold the stablecoin on the exchange through their consumer app, pending the availability of the services. Institutional clients will access RLUSD through Coinbase Prime.

No details regarding the trading pairs, eligible countries, and transaction costs have been shared by the firms in Wednesday's announcement. Also, no rewards program for RLUSD balance has been announced by Coinbase yet, making it different from the existing USDC rewards program on the exchange. 

According to Jack McDonald, senior vice president of stablecoins at Ripple, there is a growing demand from institutions for tokens pegged to the dollar and backed by regulation. “Our partnership with Coinbase meets that demand head-on,” McDonald said, noting that the deal would provide for institutions to integrate execution, settlement, and custody within a single system.

Brett Tejpaul, co-CEO of Coinbase Institutional, said that this offering fits into the exchange's strategy of allowing customers to work with various types of assets and payment options through its infrastructure.

According to Ripple, liquidity will be provided to facilitate the growth of RLUSD on Base. However, no details have been given regarding the amount of capital being allocated, liquidity providers, or anticipated transaction volumes.

All deposits and withdrawals made on XRP Ledger, Ethereum, and Base will be covered by the agreement. It is not stated in the announcement which services are available in each particular jurisdiction and whether all three blockchains have the same retail account features.

Earlier this month, Ripple and Cross River Bank inked a deal that will enable the linking of its RLUSD coin to one bank network through which dollar payments will be made on the XRP Ledger. The deal was officially announced by Cross River on October 15, when it was noted that fintech firms would be able to switch between US dollars and RLUSD using the established banking infrastructure. The bank will integrate the new coin into its own Core Operating System (COS) as per the terms of the deal, with transactions supported on the XRP Ledger.