How XRP Ledger and RLUSD Revolutionizes Cross-Border Payments AllinCrypto April 2, 2025
Ripple is enabling institutions, businesses, and banking groups the ability to make cross-border payments easily, quickly, and at the lowest rates.
Thanks to the XRP Ledger, Ripple Payments and the XRP token, a new way of doing payments is on the verge of global adoption, and we’re going to explore how it’s all possible.
With Ripple’s stablecoin RLUSD on the market, a new element has been added to the Ripple payments ecosystem, making Ripple’s innovative case for cross-border payments hard to ignore.
How Ripple XRP is innovating international payments
Ripple is a digital payment network home to the XRP token, RLUSD stablecoin, Ripple payments, RippleNet, and more, changing the way we look at payment systems.
With the US and Trump turning pro-crypto, the SEC has dropped their appeal against Ripple, opening new up doors for the firm to take on its path to changing the global financial system.
As one of the most regulatory-friendly cryptocurrencies in the market, Ripple is leveraging its traditional financial connections and challenging SWIFT with Ripple payments.
As XRP ETFs gain approval in the near future, many crypto investors believe the Ripple ecosystem as a whole will gain new exposure beneficial to incisions being able to fully integrate with Ripple.
Let’s find out how Ripple’s XRP Ledger and token will work in changing the way the world makes cross-border payments on a large scale.
How do XRP cross-border payments work?
The XRP token acts as a bridge currency, designed to help facilitate transactions between other currencies such as the United States dollar and the Euro. Using XRP, transactions between currencies can be done at low costs and within seconds.
When transferring or swapping different currencies or between financial firms, XRP can act as a bridge, streamlining the process.
Using XRP as a bridge frees up the bank’s hands when dealing with currency conversion and transfers. An example would be someone sending $100 to Europe and having it be swapped to Euros.
Instead of converting the USD to Euros and requiring dozens of intermediaries, it would be turned into XRP, sent, and then swapped into Euros quickly and cheaply.
For banks, they would only require the XRP token as a bridge currency, removing the need for large currency reserves and intermediaries which slows the process down.
How do RLUSD cross-border payments work?
Ripple USD, known as RLUSD, is a 1:1 stablecoin backed and pegged to the United States Dollar. Currently, users can transfer and use RLUSD on the XRP Leder and Ethereum blockchain as centralized exchanges gradually welcome the token onto their platforms.
In Ripple’s cross-border payments ecosystem, RLUSD can be used as a digital dollar for those who wish to make transactions using only one currency.
For many, RLUSD can be an alternative to cash payments. Over time, RLUSD’s use cases will become more apparent.
The token is racing to become the most industry-compliant alongside USDC and other leading stablecoins, with banks and the US government believing stablecoins can become legitimate digital dollars.
What is On-demand (ODL) liquidity?
Another part of the Ripple cross-border plan is on-demand liquidity, an important part of the Ripple cross-border payments puzzle. On-demand liquidity (ODL) removes the need for pre-funded accounts in international payments.
@BitwiseInvest “The Investment Case for XRP” report, the investment firm highlights XRP’s real-world use cases, On-demand liquidity, $XRP ETFs and how Ripple will benefit “significantly” from Trump. Bitwise also says XRP’s price can reach $12.70 before 2030 pic.twitter.com/yalclTLdMZ
— ALLINCRYPTO (@RealAllinCrypto) March 27, 2025
When a bank wants to send money to another country, instead of pre-funding an account with large sums, XRP is used as a bridge currency, as stated before, and the funds can be sent instantly before being swapped into local currencies on the other side.
The option for fast, instant liquidity in banking is a game change,r and why Ripple can challenge the SWIFT banking communications network.
SWIFT transactions can take a few days and banks will need to hold foreign currency reserves in dozens of countries where the bank must use pre-funded accounts.
On-demand liquidity makes vostro and nostro accounts irreverent since the XRP bridge token enables real-time conversion within seconds.
What can we expect from Ripple XRP and RLUSD in 2025?
Ripple payments could very well become integrated with US banks within 2025 thanks to the SEC’s pro-crypto outlook.
The success of Ripple’s adoption would be a market-altering event, possibly making XRP one of the most sought-after cryptocurrencies alongside Bitcoin.
One of the reasons for Ripple’s continued market interest is their vision for a new way of making international payments which, in 2025, is on the verge of becoming implemented internationally.
In February 2025, Ripple partnered with Unicâmbio to facilitate instant cross-border payments between Portugal and Brazil. If the SEC was the main entity preventing Ripple from expansion, then 2025 would be a very interesting year for the firm.
The post How XRP Ledger and RLUSD Revolutionizes Cross-Border Payments first appeared on AllinCrypto.
