Ripple’s stablecoin, Ripple USD (RLUSD), is quietly gaining traction, with a market valuation of over $527 million, according to CoinMarketCap data. In the last 24 hours, per Ripple Stablecoin Tracker, 10,000,000 RLUSD were minted at the RLUSD Treasury.

Stablecoins are currently in the spotlight, thanks to the newly signed GENIUS Act, which establishes a regulatory framework for dollar-backed stablecoins and aims to strengthen the U.S. role in the evolving global cryptocurrency landscape.

The new law requires stablecoins to be backed by liquid assets like U.S. dollars and short-term Treasury bills, and issuers must declare the composition of their reserves regularly.

Stablecoins are intended to keep a steady value, typically a 1:1 U.S. dollar peg, and their use has grown, particularly among crypto traders moving funds between tokens. The industry believes that they will become widely used for sending and receiving payments subsequently.

Stablecoins see increased optimism

The recently signed GENIUS Act has spurred optimism in the stablecoin sector, including RLUSD.

According to CoinMarketCap, the stablecoin market is worth more than $264 billion, and it may grow to $2 trillion by 2028 under the new law, Standard Chartered Bank predicted earlier this year.

According to SEC Commissioner Hester Peirce, the new GENIUS law confirms that payment stablecoins are not securities and marks an important milestone in the effort to bring regulatory clarity to crypto, a necessary prerequisite for market innovation to flourish.

In the past week, Ripple announced Bank of New York Mellon as the primary custodian for the RLUSD stablecoin reserves, a move that is believed to enhance regulatory compliance for Ripple, the issuer of Ripple USD (RLUSD), as well as institutional credibility for the company and the rapidly growing stablecoin industry.