RLUSD Revenue Trails XRP Sales as Ripple Seeks Stable Income Stream

Ripple's stablecoin, RLUSD, has been generating recurring revenue for the company through its reserve pool and fees. As of May 28, the reserve pool stood at $1.833 billion, which could generate about $67.8 million in annual gross income from Treasury bills, money-market funds, and bank deposits. This durable dollar-denominated income supports crypto adoption and funding diversification.

However, the revenue from RLUSD still trails Ripple's XRP sales, which reached $310.68 million in Q3 2022. The difference lies in the predictability of reserve yield versus the variable token monetization. While RLUSD provides recurring revenue as long as it remains circulating, XRP income depends on sales and market value.

Ripple's stablecoin business is building a reliable revenue stream through its reserves and fees. The company reported $1.731 billion in circulation and $1.833 billion in reserves for RLUSD as of May 28. These interest-bearing assets provide Ripple with a steady income source, which can be attractive to investors seeking predictable returns.