Ripple Partners with UK-based LMAX to Boost RLUSD Utility

Key Insights

• Ripple partners with LMAX Group to boost the utility of its RLUSD stablecoin.
• The firm will invest $150 million in LMAX to support its cross-asset ambitions.
• XRP is down nearly 3% over the past 24 hours, despite Ripple’s positive developments.

Crypto payments company Ripple has partnered with UK-based cross-asset marketplace LMAX Group to boost institutional adoption of stablecoins. The deal is expected to enable the fusion of traditional and digital capital markets.

LMAX announced a partnership with Ripple in a blog post. It will integrate Ripple’s stablecoin RLUSD into its infrastructure. The move aims to accelerate institutional stablecoin adoption and cross-asset mobility. RLUSD will become a core collateral asset within the LMAX platform.

It said:

The move highlights Ripple’s efforts to boost the utility of its 2024 stablecoin. With a circulating supply of $1.38 billion, RLUSD is just outside the top ten stablecoins by market cap. However, its supply increased by more than 5% in the past 30 days.

Ripple CEO Brad Garlinghouse stated earlier this year that enhancing the utility of its assets, including XRP and RLUSD, remains a top priority.

Enabling RLUSD to serve as a collateral asset for institutional trading would go a long way in enabling that. In that role, RLUSD will serve as a bridge asset linking TradFi infrastructure to on-chain settlement.

Meanwhile, Ripple committed to invest $150 million in LMAX Group as part of the partnership. According to the announcement, the financing will support LMAX’s long-term cross-asset growth strategy.

Speaking on the deal, Ripple SVP of Stablecoins Jack McDonald noted that it would increase RLUSD’s utility. He stated that RLUSD is already a top-5 USD-backed stablecoin.

LMAX CEO David Mercer emphasized that fiat-backed stablecoins play a vital role in connecting traditional finance with digital assets. He highlighted Ripple as a leader in driving this integration. The two firms are now focused on developing a modern financial ecosystem.

Interestingly, LMAX highlighted several key benefits of the RLUSD integration for its clients. These include enhanced liquidity, margin efficiency, and 24/7 access to cross-asset markets.

Beyond RLUSD adoption, the partnership will also lead to the integration of LMAX Digital Asset Exchange with Ripple Prime. This will allow Ripple Prime customers to use LMAX Digital for price discovery.

Despite the partnership and potential for increased usage of RLUSD, the Ripple token XRP fell in value today. The token is down by almost 3% amidst a general decline in crypto asset prices and now trades at $2.081.

The decline represents a further challenge for XRP’s efforts to rebound, as it is now down 4% over the last 7 days. However, the tplekn is still up by more than 11% year-to-date.

The choppy performance of XRP contrasts with the generally positive developments for Ripple over the past few weeks. The firm has secured two European licenses in the past couple of days.

This includes an electronic money institution (EMI) approval in the UK and a Green Light Letter in Luxembourg. Ripple now has over 75 regulatory approvals globally.

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