Ripple gains U.K approval as ‘liquidity’ fuels XRP’s 2026 momentum

ambcryptoPublished on 2026-01-10Last updated on 2026-01-10

Abstract

Despite XRP's price declining by 11.56% in 2025, the broader XRP Ledger (XRPL) ecosystem experienced significant fundamental growth, primarily fueled by a surge in stablecoin adoption. The stablecoin market cap on XRPL grew nearly 300%, with Ripple's native stablecoin, RLUSD, surpassing $1 billion and later reaching $1.38 billion. This massive liquidity influx drove a 4,160% increase in the network's total tokenized asset value, demonstrating strong capital flows. A key development reinforcing this momentum is Ripple's recent official approval to operate in the U.K., granting it legitimacy to expand payment services and work with banks. The stablecoin market cap on XRPL subsequently hit a record $405 million, underscoring the asset's central role in bridging TradFi and DeFi. The substantial liquidity provided by RLUSD enables deeper capital deployment, faster transactions, and stronger throughput on the XRPL. With XRP already up 14% in 2026, this combination of regulatory approval and powerful on-chain liquidity is positioned to fuel a new growth cycle.

Liquidity has become a major engine in the current market.

The logic is simple – As TradFi continues to integrate with DeFi, stablecoins now sit at the core of this shift. Because of this, the stablecoin market reaching $320 billion highlights where real capital is concentrated.

Against this backdrop, it’s worth asking whether Layer-1s with native stablecoins have a structural advantage. In Ripple’s case, RLUSD on the XRPL makes this point, recently reinforced by a key development.

Stablecoins drive XRPL growth despite XRP price dip

2025 proved to be bullish on one key aspect – Fundamentals.

Notably, Ripple showed this divergence clearly. The back-to-back Q4 crashes didn’t spare XRP, which closed the year down 11.56%. It broke its $2-support despite multiple moves to expand into the growing DeFi space.

Under the surface though, XRPL kept growing. The driver? Stablecoins. On XRPL, the stablecoin market cap jumped by almost 300% by year-end – A sign suggesting that XRP’s fundamentals were stronger than the price.

On top of that, RLUSD surpassed $1 billion in market cap.

In fact, Binance highlighted it as one of just six stablecoins to reach that milestone in 2025. The result? Strong capital flows, as evidenced by XRPL’s total tokenized asset value, which soared by 4,160%, closing at $213 million.

Taken together, it’s clear that despite XRP’s technical weakness in 2025, its on-chain ecosystem attracted significant capital, with RLUSD acting as the main liquidity engine while Ripple strengthened its fundamentals.

Naturally, the question is – Will XRP finally reflect this growth in 2026?

Ripple secures permission to operate in the U.K

Ripple has kicked off 2026, demonstrating the impact of its 2025 FUD.

Recently, it secured official approval to operate in the U.K, allowing the company to expand payment services. In other words, Ripple has gained legitimacy to work with banks, further strengthening its L1 positioning.

At the same time, the stablecoin market cap on XRPL hit a record $405 million, rising by 11.5% in just 7 days. This update highlights how stablecoins continue to sit at the core of the growing integration between TradFi and DeFi.

In this context, the $40 million RLUSD minted on XRPL isn’t random.

As the chart shows, RLUSD’s market cap has hit $1.38 billion, reflecting massive liquidity growth on the network. It’s no surprise that this liquidity is now attracting major players, including the U.K, in its approval case.

The logic is simple – The more liquidity an L1 has, the deeper its capital deployment. Consequently, this drives faster transactions and stronger throughput, which helps explain Ripple’s approval.

In short, native stablecoins are reshaping Ripple’s institutional game. With 2026 off to a strong start and XRP already up 14%, this momentum could be just the beginning of its next growth cycle.


Final Thoughts

  • Despite XRP’s 2025 price dips, RLUSD and other stablecoins fueled massive on-chain liquidity.
  • Official U.K approval and RLUSD market cap highlight how native stablecoins are powering faster transactions.

Related Questions

QWhat was the key driver of XRPL's growth in 2025 despite the XRP dip?

AStablecoins were the key driver. The stablecoin market cap on XRPL jumped by almost 300% by year-end, with RLUSD surpassing $1 billion in market cap.

QWhat major regulatory milestone did Ripple achieve at the start of 2026?

ARipple secured official approval to operate in the U.K., allowing the company to expand its payment services and work with banks.

QHow much did the total tokenized asset value on XRPL increase by in 2025?

AXRPL's total tokenized asset value soared by 4,160%, closing the year at $213 million.

QWhat is the significance of RLUSD's market cap reaching $1.38 billion?

AIt reflects massive liquidity growth on the XRPL network, which attracts major players and enables deeper capital deployment, faster transactions, and stronger throughput.

QAccording to the article, what is the core of the growing integration between TradFi and DeFi?

AStablecoins sit at the core of the growing integration between traditional finance (TradFi) and decentralized finance (DeFi).

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