GENIUS Act fuels RLUSD growth to $527M, boosts credibility
The GENIUS Act, signed on July 18 2025, has provided regulatory certainty for dollar-backed stablecoins by requiring federally licensed or state-supervised issuers to maintain 1:1 USD reserves, undergo monthly audits and submit to oversight, excluding algorithmic and non-USD pegs. This regulatory clarity from the GENIUS Act has boosted market confidence in compliant stablecoins. In response, Ripple minted 10 million RLUSD tokens, driving its market cap to $527 million, and appointed Bank of New York Mellon as reserve custodian to enhance institutional credibility. Analysts at Standard Chartered project the stablecoin market could reach $2 trillion by 2028 under such conditions. Together, these developments position RLUSD and the XRP Ledger for accelerated retail and institutional adoption.
Bullish
Market impact: bullish. Short-term, the minting of 10 million RLUSD tokens and appointment of Bank of New York Mellon as custodian signal strong demand and institutional backing, likely driving buy-side pressure. Regulatory clarity from the GENIUS Act reduces counterparty and compliance risks, improving investor confidence and RLUSD liquidity. Long-term, a clear national framework and audit requirements create a sustainable environment for growth, potentially attracting more institutional and retail participants and solidifying RLUSD’s position in the competitive stablecoin market. Historical precedents show regulatory support and custodial partnerships underpin stablecoin value growth, suggesting sustained upward momentum for RLUSD.