Ethena Labs has confirmed that XRP meets all requirements for integration into USDe, the company's $11.8 billion stablecoin, following a comprehensive risk assessment by the firm's committee. The third-largest cryptocurrency by market capitalization has passed every threshold under Ethena's newly implemented Eligible Asset Framework, positioning it alongside BNB and HYPE as a prime candidate for onboarding into the stablecoin's collateral system.
What to Know:
- XRP has passed all requirements under Ethena Labs' Eligible Asset Framework for potential integration into the $11.8 billion USDe stablecoin
- The cryptocurrency's $181 billion market cap and daily trading volumes exceeding $10 billion contributed to its approval as a collateral candidate
- Only BNB has been formally approved so far, while XRP and HYPE remain candidates awaiting final onboarding decisions
Ethena Labs introduced the Eligible Asset Framework as a systematic approach to expanding collateral options for USDe. The framework establishes specific benchmarks that digital assets must achieve before consideration for integration.
Assets must maintain over $1 billion in average open interest across two weeks. Daily spot trading volumes must exceed $100 million, while perpetual futures volume needs to surpass $100 million per day. The framework also requires spot order book depth of more than $500,000 and perpetual futures depth above $10 million on a two-week average.
XRP has satisfied each of these requirements. The cryptocurrency's performance indicates sufficient strength from a risk management perspective to participate in USDe's perpetual futures collateral system, according to Ethena's assessment.
Market Position Strengthens XRP's Case
XRP has maintained its position among the most liquid digital assets in the cryptocurrency market for years. Its market capitalization reached $181.944 billion at the time of the announcement, representing substantial growth over the past year and solidifying its third-place ranking behind Bitcoin and Ethereum.
The cryptocurrency's trading infrastructure spans major exchanges across America, Europe, and Asia. This global presence, combined with deep order books, enables XRP to process large transactions without significant price disruption.
Such liquidity characteristics make XRP well-suited for integration into USDe, which has been generating hundreds of millions of dollars in weekly mints. Recent data shows USDe mints exceeded 670 million over a seven-day period.
Understanding Stablecoin Collateral Systems
Stablecoins like USDe maintain their dollar peg through various collateral mechanisms. Traditional stablecoins use cash reserves or government securities as backing. USDe employs a more complex system involving perpetual futures contracts.
Perpetual futures allow traders to hold positions without expiration dates, unlike traditional futures contracts. These instruments provide continuous exposure to underlying assets while generating funding payments between long and short positions. When integrated as collateral, assets like XRP would support USDe's stability through this perpetual futures mechanism. The system requires highly liquid assets to function effectively, explaining Ethena's stringent requirements.
Current Status and Next Steps
Only BNB has received formal approval as the first new eligible asset for USDe's perpetual futures collateral system. XRP and HYPE remain candidates awaiting final onboarding decisions from Ethena Labs.
Formal integration would represent a significant expansion of XRP's utility beyond traditional payment and remittance applications. While this development may not align with all holder expectations, it could establish new use cases for the cryptocurrency.
Ripple's own stablecoin, RLUSD, has achieved separate success in the market. The dollar-pegged token has reached approximately $680 million in market capitalization within seven months of operation. Ripple continues expanding RLUSD's presence through partnerships, including a collaboration with SBI VC Trade to enter the Japanese market by early 2026.
Closing Thoughts
XRP's approval as a candidate for USDe integration reflects its strong market position and liquidity profile. The development could open new avenues for the cryptocurrency's adoption in decentralized finance applications, pending final approval from Ethena Labs.