Circle Paid Its Partners $819 Million in Six Months. Can Ripple’s RLUSD Compete?

Circle Internet Group (NYSE:CRCL | CRCL Price Prediction) made headlines by paying $819 million to partners distributing USD Coin (CRYPTO:USDC) in the first half of 2026, as Circle president Kash Razzaghi announced on X. He noted that over 150 global partners are building on USDC and sharing in its success. Every customer can redeem USDC for dollars for free, meaning they can swap tokens without fees.

This significant payment sets a high bar for Ripple USD (CRYPTO:RLUSD), Ripple’s competing dollar token, which has a market cap of around $2.4 billion, compared with USDC’s $72.3 billion as of October 18. Meanwhile, XRP (CRYPTO:XRP) is trading at about $1.30, down 6.9% over the past week, despite new RLUSD deals with a bank and a brokerage-systems firm.

So, in the RLUSD vs. USDC debate, can Ripple’s stablecoin compete with a competitor that has distributed $819 million to its partners in just six months? And what benefits could XRP holders expect if RLUSD does succeed?

Circle Pays Partners to Keep USDC as Their Default Dollar Token

Most of Circle’s income comes from the reserves backing USDC, where each token is supported by cash and short-term U.S. government debt. Circle retains the interest generated from these investments, while USDC holders do not receive any of it. The reported $819 million represents a portion of that income that Circle shares with exchanges, wallets, and fintech applications that offer USDC, similar to a revenue-sharing model.

This financial incentive fosters partner loyalty, encouraging them to promote USDC as their primary dollar token. The free redemption policy helps eliminate potential exit fees that might drive businesses toward rival stablecoins. However, Circle’s president did not disclose how this substantial amount would be distributed among partners.

Circle also maintains the necessary licenses for further growth. The Office of the Comptroller of the Currency, the main federal regulator overseeing national banks, has conditionally approved national trust bank charters for both Circle and Ripple. Additionally, Circle is expanding its operations with its new Arc blockchain and the acquisition of Tazapay.

Most of Circle’s growth strategy focuses on emerging markets. In an interview published on October 16, Circle CEO Jeremy Allaire highlighted growing interest in stablecoins for payments among businesses and individuals in Southeast Asia, Latin America, and the Middle East, and shared plans to tap new markets to meet this demand.

RLUSD Wins New Bank Deals but Still Trails USDC by a Wide Margin

USDC significantly outperforms RLUSD across various market metrics. As of now, around 72.3 billion USDC tokens are in circulation, whereas RLUSD has only about 2.4 billion. In terms of trading activity, USDC recorded approximately $8.4 billion traded over a 24-hour period, compared to about $58 million for RLUSD. Trading volume indicates how frequently a token is used in transactions.

Ripple is working to narrow this gap by integrating RLUSD into institutional systems. On October 15, Cross River Bank announced that it has incorporated RLUSD on the XRP Ledger into its core banking system, allowing fintech clients to access RLUSD, ACH transfers, and real-time payments through a single API connection. However, this service is still limited to specific states in the U.S.

Cross River emphasized that RLUSD is one of several options, saying on X that it is partnering with Ripple “to expand our stablecoin optionality.” Its website already promotes various stablecoin services without committing to exclusive terms or volume guarantees.

Moreover, DriveWealth, which powers trading and settlement systems for multiple brokerage apps, is reportedly planning to utilize RLUSD for settling trades and securing client collateral, starting in Europe. They are also exploring stock-backed lending through Ripple’s prime brokerage services, which encompass lending, trade clearing, and custody solutions for larger trading clients. As of October 15, neither company has made any official confirmation of these details public.

Neutral Payment Networks Favor the Leading Stablecoin

Major payment networks are also taking a neutral stance. Mastercard (NYSE:MA) and BVNK introduced a stablecoin account platform for banks and fintechs, without disclosing which specific stablecoins will be supported. A neutral framework lets the network accommodate any tokens clients already hold, giving an advantage to the issuer with the most liquidity, particularly one like Circle, which paid $819 million in just six months.

While Ripple is making progress with its partnerships, the lack of disclosed figures makes a fair comparison difficult. The announcements from Cross River and DriveWealth don’t reveal settlement volumes, associated fees, or revenue-sharing agreements that would provide context for comparing them to Circle’s partner payments. Being a privately held company, Ripple’s financial capacity to match Circle’s terms remains unclear.

Can RLUSD Compete With USDC, and What Does It Mean for XRP Holders?

While RLUSD could forge new partnerships, it still lacks the scale and usage metrics USDC has. The competitive landscape favors USDC for now, but as Ripple continues to develop RLUSD, the future dynamics may shift.

For XRP holders, RLUSD’s growth does little for the price. A fintech paying through Cross River uses RLUSD and dollars, not XRP, and Ripple keeps interest on RLUSD’s reserves, which XRP holders don’t share. XRP gains only the tiny fee burned on each XRP Ledger transaction, unless Ripple announces a settlement flow that uses XRP as a bridge currency at its Swell conference on October 28.

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