XRP Poised to Bolster USDe as Ethena Labs Signals Integration Readiness
XRP, the digital asset developed by Ripple Labs, is on the cusp of a significant expansion in its utility, as Ethena Labs, the issuer of the $11.8 billion stablecoin USDe, has declared it ready for integration. This move signals a new chapter for XRP, positioning it as a potential cornerstone in the collateral backing of a major stablecoin.
XRP Meets Ethena's Rigorous Asset Framework
Ethena Labs' risk committee recently confirmed that XRP has successfully navigated all the stringent thresholds set forth by its newly unveiled Eligible Asset Framework. This framework, designed to meticulously evaluate potential collateral assets, assesses key metrics such as liquidity, market capitalization, and daily trading volumes. XRP's impressive market capitalization, exceeding $181 billion, coupled with daily trading volumes comfortably above $10 billion, were crucial factors in its qualification. The framework also required an average open interest of over $1 billion across two weeks, daily spot trading volumes above $100 million, and perpetual futures volume surpassing $100 million daily. Furthermore, strict liquidity requirements, including a spot order book depth exceeding $500,000 and perpetual futures depth above $10 million (on a two-week average), were all met by XRP.
Expanding Utility and Market Footprint
This successful evaluation means XRP is considered robust enough from a risk perspective to be integrated into USDe’s perpetual futures collateral system. Should Ethena Labs proceed with formal onboarding, it would mark a substantial enhancement of XRP's utility within the broader cryptocurrency ecosystem. This development underscores XRP's enduring status as one of the most liquid digital assets, boasting a deep order book and a significant global trading presence across American, European, and Asian exchanges, allowing it to manage large transactions without compromising price stability. Separately, Ripple's own US dollar-pegged stablecoin, RLUSD, has also demonstrated remarkable growth, achieving a market capitalization of approximately $680 million within seven months and actively expanding its reach into markets like Japan through strategic partnerships. At the time of reporting, XRP was trading at $3.02, reflecting a 6.5% increase over the past 24 hours.
