Ripple is stepping up efforts to expand institutional digital asset infrastructure, led by the XRP Ledger (XRPL) and the dollar-pegged stablecoin RLUSD. It is expanding cooperation with traditional financial firms as it moves to build a blockchain-based financial ecosystem spanning payments, collateral and trading.

On July 20, blockchain media outlet Decrypt reported that Ripple is pursuing a strategy to link traditional finance and blockchain payment infrastructure by working with Mastercard, JPMorgan, Ondo Finance and OKX, among others.

The key is a division of roles. Ripple plans to use the XRP Ledger as base infrastructure for inter-institution settlement and value transfer. It plans to expand RLUSD as an asset used for financial services such as trading and collateral.

Jack McDonald (잭 맥도널드), chief executive of Standard Custody and Ripple’s senior vice president in charge of stablecoins, said in a recent interview released by Grayscale that “everything Ripple does is focused on building institutional-grade infrastructure that supports institutions and enables the movement of value.” He said the recently announced cooperation with Mastercard, JPMorgan and Ondo Finance also involves payments carried out on the XRP Ledger, describing it as another step linking traditional finance and blockchain payments.

The range of RLUSD uses is also expanding quickly. McDonald said crypto exchange OKX currently supports RLUSD across various products, and RLUSD can be used not only for spot trading but also for derivatives trading and as collateral. Ripple’s strategy is to position RLUSD not as a simple payment stablecoin but as a core component of trading infrastructure.

The move aligns with a strategy to first establish RLUSD at major exchanges and then broaden its use into corporate and institutional markets. McDonald said RLUSD has maintained rapid growth since its launch about 18 months ago, and its market value has reached about $1.6 billion. He added that, over the long term, what matters is expanding real use cases rather than market value.

Ripple sees most of its initial goals as achieved, including listings on major exchanges and building a network of market makers and custodians. It is now focused on increasing institutional use cases for RLUSD and expanding the XRP Ledger as inter-institution payment infrastructure.

Issuance activity also shows the strategy. Ripple issued a total of $291.6 million worth of RLUSD on the XRP Ledger and Ethereum over two days early this month. About 77 percent, or $225.8 million, was issued on the XRP Ledger.

On July 1, it issued $169.8 million of RLUSD, mostly on the XRP Ledger. The next day it issued an additional $121.8 million and burned $68.1 million to adjust supply between the XRP Ledger and Ethereum. Over the two days, $225.8 million was issued and $58.1 million was burned on the XRP Ledger, for a net increase of $167.7 million. On Ethereum, $65.8 million was issued and $10.05 million was burned, for a net increase of $55.75 million.

The market is interpreting this issuance structure as showing Ripple’s strategy to grow the XRP Ledger into the centre of an institutional payment network.

Ripple plans to continue a strategy of expanding RLUSD beyond exchange-based use into institutional trading and collateral markets, while establishing the XRP Ledger as a payment layer for institutions. Its “two-track strategy” of separating the XRP Ledger and RLUSD into payment infrastructure and a usable asset, respectively, has become a key pillar of its push into institutional markets.