RedotPay, a Hong Kong-based stablecoin payments fintech with more than 8 million users across 100-plus countries, has launched the RLUSD card - an XRP Ledger-powered payment card that combines XRP-backed credit, Ripple's RLUSD stablecoin, and Visa's global network. According to reports, the card allows users to pledge XRP as collateral at a 50% loan-to-value ratio, receiving a credit line settled in RLUSD on the XRP Ledger that can be spent anywhere Visa is accepted. The company reports stablecoin card transaction volume up 80% year-to-date in 2026 and 250% compared with the same period last year, demonstrating strong growth in its existing stablecoin payment business as it expands to over 100 countries while processing $12 billion in annualized payment volume. As highlighted by crypto blockchain researcher BankXRP, the initiative allows users to spend without selling their XRP, further bridging digital assets with everyday commerce.
The card operates as a securities-backed lending product, where users pledge XRP as collateral and receive credit at half its value. For example, ₹1,000 worth of XRP unlocks ₹500 of spending power in RLUSD. As reported, the product offers tax-deferral benefits since borrowing against assets is not considered a disposal, which is particularly valuable for long-term XRP holders with complicated cost bases. The loan is settled in RLUSD directly on the XRPL, allowing rapid, efficient settlement for each transaction made using the card. The card maintains XRP exposure intact while providing liquidity access, allowing users to spend without selling their tokens. The marketing emphasizes spend without selling, which preserves upside potential and defers taxable disposals. For long-term XRP holders, the model offers a practical alternative to liquidating their holdings while still benefiting from potential future price appreciation.
The launch represents a real distribution event for RLUSD, as reported, routing consumer settlement through the XRP Ledger itself. The card is the first mass-market consumer product that routes RLUSD settlement through the XRPL, with each credit draw representing an on-ledger transaction. RedotPay has an existing Ripple relationship through African remittance corridors plus a May rollout of direct XRP payment features. The product extends the stablecoin payments category along its natural axis, allowing crypto holders to join the growing stablecoin payment infrastructure without liquidating their positions. By combining RLUSD, XRP-collateralized credit, and Visa's global reach, RedotPay is driving innovation in payment systems and positioning the XRP Ledger as foundational infrastructure for both digital and everyday commerce. The launch comes as stablecoin adoption accelerates, with RedotPay's expanding presence within the XRP ecosystem building momentum for the XRP Ledger beyond its traditional cross-border payments role.
On the operational side, RLUSD functions as the settlement layer within the XRP Ledger network to leverage its low transaction fees. According to analysis attributed to industry researchers, the integration of dollar-pegged assets could drive processing demand within Ripple's distributed ledger. The initiative was publicly analyzed by Odelia Torteman, Head of Digital Assets at XRPL Commons, and Taylor Bossung, Head of Corporate Affairs at RedotPay. During their discussion, they addressed the evolution of on-chain remittances, credit backed by tokenized assets, and payment automation via artificial intelligence agents. According to projections presented by the executives, these technologies could position the XRP Ledger as infrastructure geared toward integrated digital commerce. The platform plans to publish data corresponding to the volume of issued credit in its next quarterly operational report as a next monitoring milestone.
The product faces significant liquidation risks given XRP's recent performance, having fallen more than 60% from its 2025 high and traded at fifteen-month lows this month. As reported, the 50% loan-to-value ratio creates exposure to price declines, with users having no buffer until the price falls. Critical terms including borrowing costs, liquidation thresholds, and collateral treatment are not disclosed in launch materials. The product concentrates leverage on a single volatile asset among eight million retail users, potentially creating a price-insensitive seller during future drawdowns, similar to structures that amplified previous crypto cycles.
