Ripple and Robinhood have struck a deal to expand the use of Ripple's RLUSD digital dollar across Robinhood's institutional and treasury operations. RLUSD will also be listed on Robinhood's trading platform.
Ripple has struck a deal with Robinhood to expand the reach of RLUSD, its digital dollar. The partnership involves using RLUSD to settle institutional trades and automate Robinhood's treasury operations.
What the partnership covers
Robinhood plans to use RLUSD on the XRP Ledger for institutional settlement. The token is already live on Robinhood Chain and Bitstamp by Robinhood, and it is expected to launch in the Robinhood app later this year.
The companies will also integrate Ripple Treasury into Robinhood's global financial operations to automate cash and liquidity management, cash flow forecasting, payments, risk management and intercompany netting.
Ripple Prime, meanwhile, provides Bitstamp by Robinhood with lending and margin financing across approximately 20 digital assets. Support for perpetual futures trading on Bitstamp through Ripple Prime is expected later this year.
Executives frame it as infrastructure
Robinhood Crypto general manager Johann Kerbrat said in a statement shared with CNBC: "Utility is what moves stablecoins forward." He added that Bitstamp will have access to RLUSD for institutional settlement, Ripple Treasury for operations and Ripple Prime for financing.
Ripple President Monica Long told CNBC that stablecoins have evolved from a crypto trading tool into a critical piece of financial infrastructure. She said the partnership gives institutions the ability to operate 24/7/365.
RLUSD's market position
RLUSD's market cap has grown to more than $2.5 billion, according to CNBC. Tether's USDT and Circle's USDC still dominate the total stablecoin market, which now exceeds $300 billion.
Circle, a Ripple competitor, launched the Circle Payments Network earlier this year, connecting financial institutions and payment providers using USDC and other digital assets.
Sources: CNBC, Crypto Briefing
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