Ripple’s $2.6 Billion Stablecoin is Growing on Ethereum, Not XRP

Ripple CEO Brad Garlinghouse wants RLUSD, its $2.6 billion market cap stablecoin, to run on the XRP Ledger. However, about two-thirds of the RLUSD supply now sits on Ethereum, DefiLlama data shows.

Garlinghouse made the comments on X. Replying to a user who called RLUSD great for XRP, the Ripple CEO drew a clear line between the two assets:

Agreed! RLUSD isn’t competing with XRP. It’s competing with other stablecoins. Use case matters, and I want those use cases running on the XRPL.

— Brad Garlinghouse (@bgarlinghouse) November 3, 2026

He also praised a post by an XRP Ledger developer that compared both assets.

Ripple issues the RLUSD supply and can freeze those tokens, the developer argued. Nobody, by contrast, can freeze XRP.

In addition, every account on the ledger needs an XRP reserve, and users pay all transaction fees in XRP.

Well said, Vet. Complementary, not competitive.

— Brad Garlinghouse (@bgarlinghouse) November 3, 2026

Days earlier, Garlinghouse called the two assets “very complementary” at Swell 2026.

At the event, the Ripple chief also rejected rumors that the company was ditching XRP for its stablecoin.

RLUSD Supply Keeps Shifting to Ethereum

On-chain data, however, shows where RLUSD actually lives. Of roughly $2.57 billion in circulation, about $1.72 billion sits on Ethereum. The XRP Ledger holds about $850 million, or roughly one-third.

Moreover, the gap has widened over the past month. RLUSD supply on Ethereum grew by about a third, while the XRP Ledger lost nearly the same share.

That marks a reversal from the summer. In late June, the XRP Ledger overtook Ethereum as the main network for RLUSD. Ethereum then took back the lead in late August.

Ripple has not explained the shift. However, Ethereum offers a deeper DeFi market, including the lending protocol Aave. In contrast, the XRP Ledger still lacks native lending. Ethereum also held most of the stablecoin from the start.

Overall, RLUSD supply keeps growing. The stablecoin’s market cap is up more than 88% this year, Ripple says.

Ripple’s new national trust bank charter also covers the reserves behind RLUSD. For now, though, most of that stablecoin growth is happening outside Ripple’s own ledger.