Ripple wins U.K. green light as RLUSD liquidity sets the stage for XRP’s 2026 comeback
Liquidity has quietly become one of the strongest forces shaping the current crypto cycle. As traditional finance pipelines merge with decentralized rails, stablecoins are increasingly the core plumbing of this new system. With the total stablecoin market swelling to around $320 billion, it’s clear where real, deployable capital now lives – and which networks are best positioned to capture it.
In that context, Layer-1 blockchains that host strong, native stablecoin ecosystems appear to enjoy a built‑in structural advantage. Ripple’s XRPL is a prime example, with RLUSD emerging as a central pillar of its growth story. Recent regulatory progress in the U.K. has only sharpened this narrative.
2025: Weak XRP price, strong XRPL fundamentals
From a market perspective, 2025 was harsh for XRP holders. The asset suffered alongside the broader market during consecutive Q4 sell‑offs and ultimately finished the year down about 11.56%. Its key $2 support level failed, despite Ripple’s efforts to tap into the expanding DeFi and tokenization landscape.
Yet price action told only part of the story. Under the hood, the XRP Ledger continued to expand. The primary engine behind that growth was stablecoins. Over the course of 2025, the total stablecoin market cap on XRPL surged by nearly 300%, signaling that real capital was increasingly choosing the network even as XRP’s price lagged.
Within that stablecoin wave, RLUSD stood out. By the end of 2025, RLUSD had climbed past the $1 billion market‑cap threshold, putting it among a small group of stablecoins to reach that level. This was not just a psychological milestone; it reflected a deepening pool of liquidity that participants could use for trading, payments, and DeFi strategies anchored on XRPL.
The impact was visible in the tokenization metrics as well. The value of tokenized assets on XRPL rocketed by over 4,000%, ending the year at about $213 million. That kind of growth, against a backdrop of falling token prices, underscored a key point: XRP’s fundamentals, in terms of network usage and liquidity, were significantly stronger than its chart suggested.
Put together, 2025 painted a picture of divergence. XRP, the token, looked technically weak. XRPL, the network, looked fundamentally robust. And at the center of that divide sat RLUSD, increasingly acting as the primary liquidity driver powering Ripple’s broader strategy.
2026: Ripple turns regulatory progress into momentum
The new year has already started to validate that underlying strength. Ripple entered 2026 by securing official authorization to operate in the United Kingdom, a key global financial hub. This regulatory approval allows Ripple to expand its payment and settlement services in one of the most tightly regulated markets in the world.
Gaining this permission effectively gives Ripple a clearer path to working directly with banks and financial institutions in the U.K. For an L1 focused on cross‑border payments, institutional flows, and real‑world financial infrastructure, this kind of regulatory legitimacy is more than a headline; it is a practical boost to its competitive positioning.
At the same time, the XRPL stablecoin market has continued its rapid ascent. The combined stablecoin market cap on the network recently climbed to a record of about $405 million, jumping 11.5% in just a week. This rise underscores how central stablecoins remain to the ongoing convergence between TradFi and DeFi, especially on payment‑oriented chains.
Within that growth, RLUSD has seen another expansion wave. Roughly $40 million in fresh RLUSD has been minted on XRPL, pushing its overall market cap to around $1.38 billion. That figure reflects not just user interest, but a deepening reservoir of liquidity that can underwrite larger payments, more active trading, and expanded on‑chain financial services.
It is this liquidity profile that is increasingly drawing institutional attention. Regulatory authorities and financial partners tend to gravitate toward networks where capital can move efficiently, at scale, and with minimal slippage. Ripple’s U.K. approval can be seen, in part, as a recognition that XRPL now has the depth to support meaningful real‑world volume.
The underlying logic here is straightforward: the more liquidity an L1 commands, the greater its capacity for capital deployment. High liquidity tends to translate into faster execution, tighter spreads, and stronger throughput across the network. For regulators and banks evaluating blockchain infrastructure, those are not abstract metrics – they are operational requirements.
Native stablecoins as Ripple’s institutional gateway
This is why native stablecoins like RLUSD are rapidly becoming a cornerstone of Ripple’s institutional strategy. Instead of relying purely on third‑party stablecoins, Ripple has helped foster a stablecoin environment that is integrated deeply with XRPL’s core design. That integration can simplify settlement flows, reduce counterparty complexity, and align incentives between network operators, institutions, and liquidity providers.
For institutional players, a liquid, widely used stablecoin on a compliant, scalable network means they can test and scale cross‑border payment corridors, on‑chain FX, and tokenized asset settlement without taking on as much volatility risk from crypto assets like XRP itself. RLUSD effectively serves as a neutral, dollar‑linked rail sitting atop XRPL’s infrastructure.
This, in turn, can have indirect long‑term effects on XRP. As more institutions onboard to XRPL for stablecoin‑based flows and tokenization, demand for XRP as a bridge asset, fee token, or liquidity backstop can gradually increase. Historically, network activity and liquidity depth tend to feed back into the value of native assets over longer cycles – even if the short‑term relationship is noisy.
From this perspective, Ripple’s 2025–2026 track record looks less like a story of price underperformance and more like a multiyear build‑out of rails, liquidity, and compliance that could set the stage for a stronger, more sustainable demand profile for XRP.
Could 2026 be the year XRP catches up with its fundamentals?
With XRP already up about 14% since the start of 2026, some traders are beginning to speculate that the token may finally start reflecting the on‑chain progress built up over the last year. While a single month of gains is not enough to confirm a new macro trend, the alignment of several factors is noteworthy:
– XRPL’s stablecoin market is expanding quickly, with RLUSD leading the way.
– Tokenized asset value on XRPL has increased dramatically, indicating real adoption.
– Ripple has secured high‑profile regulatory approval in the U.K., boosting institutional credibility.
– Liquidity on XRPL is deeper and more resilient than in previous cycles.
These elements together create the conditions under which a new growth phase for XRP becomes more plausible. If institutions ramp up activity on RLUSD and other XRPL assets, the network could see higher throughput, more fee generation, and rising demand for the underlying infrastructure – all of which can eventually spill over into the XRP market.
However, any potential XRP “catch‑up” will likely depend on the macro environment as well. Global risk sentiment, regulatory shifts in other major jurisdictions, and competition from rival L1s with their own native stablecoins will all influence how much of this fundamental progress Ripple can convert into token performance.
What the U.K. approval really signals to the market
Ripple’s authorization to operate in the United Kingdom is more than a badge of regulatory honor; it is a signal that the company’s model is increasingly compatible with traditional financial oversight. For banks and payment providers, this compatibility is often a prerequisite to experimentation and, eventually, scale.
The U.K. is known for its strict and detailed approach to financial regulation, especially in areas touching payments, money transmission, and consumer protection. For Ripple to obtain the green light suggests that its compliance, risk management, and operational frameworks have matured. That maturity, when combined with RLUSD’s growing liquidity, makes XRPL a more credible candidate for enterprise‑grade cross‑border solutions.
This kind of regulatory milestone can also have a demonstration effect. Success in one major jurisdiction can make it easier to open doors in others, as regulators often look to peer markets for precedents. If Ripple leverages the U.K. approval to further expand in Europe, the Middle East, or parts of Asia, the cumulative impact on XRPL activity could be significant.
Strategic implications for Ripple’s ecosystem
For developers and builders, the backdrop of rising liquidity and regulatory clarity is also important. A more liquid RLUSD pool can support:
– Larger and more efficient decentralized exchanges and automated market makers on XRPL
– Enterprise‑grade payment corridors for remittances and B2B settlements
– On‑chain credit, lending, and structured products denominated in a stable unit of account
– Tokenization of real‑world assets (bonds, invoices, funds) with smoother on‑chain settlement
These use cases tend to reinforce each other. As more products and services are denominated in RLUSD, the incentive to hold and use the stablecoin grows. Higher usage deepens liquidity further, which then makes it more attractive for institutions to route volume through XRPL rather than alternative networks.
In this layered ecosystem, XRP remains the native asset that can benefit from network effects, even if RLUSD and other stablecoins handle the majority of low‑volatility transactional flows.
The risks and what investors should watch
Despite the strong narrative, the path forward is not without risk. Key uncertainties include:
– Regulatory shifts: New rules in the U.S., EU, or Asia could alter how stablecoins or cross‑border crypto payments are treated.
– Competition: Other L1s with aggressive stablecoin and tokenization strategies might erode XRPL’s relative advantage.
– Market cycles: Another broad crypto drawdown could delay the translation of fundamentals into token performance.
– Execution risk: Ripple still needs to convert regulatory wins into real transaction volumes and institutional partnerships.
Observers tracking XRP’s 2026 prospects may want to watch metrics such as RLUSD market cap, XRPL transaction volume, growth in tokenized assets, and the pace of new institutional integrations. Sustained growth in these areas would strengthen the case that XRP has room to reprice over the medium term.
Conclusion: Liquidity as Ripple’s silent growth engine
RLUSD has quietly taken center stage in Ripple’s recent evolution. By anchoring a rapidly expanding stablecoin ecosystem on XRPL, it has provided the liquidity foundation that underpins tokenization, DeFi activity, and cross‑border payment experiments. The U.K. approval amplifies this progress, positioning Ripple as a more credible player in the emerging fusion of traditional and decentralized finance.
With 2026 starting on a positive note for XRP and on‑chain indicators signaling robust health, the current momentum may represent the early stages of a new growth cycle rather than a temporary bounce. Whether XRP fully capitalizes on this foundation will depend on how effectively Ripple and its ecosystem convert liquidity and regulation into real‑world usage at scale.
—
Disclaimer:
This article is for informational purposes only and should not be considered investment, trading, or financial advice. Cryptocurrencies, including XRP and stablecoins such as RLUSD, are highly volatile and involve substantial risk. Before buying, selling, or trading any digital asset, you should conduct your own research, carefully evaluate your financial situation, and consult a qualified professional if necessary.