Gemini Removes Trading Fees on Ripple's RLUSD Stablecoin: A Game-Changer for XRP Ecosystem

Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, has announced it has removed trading fees on the RLUSD/USD pair to make Ripple's dollar-backed stablecoin more accessible for users looking to swap and hold the asset. This strategic move positions Gemini as one of the few major exchanges offering completely fee-free stablecoin trading—and could significantly impact the adoption of both RLUSD and the broader XRP ecosystem.

The announcement comes as RLUSD has grown to over $640 million in market capitalization, making it one of the top six U.S. dollar stablecoins since its December 2024 launch. By eliminating trading fees, Gemini removes one of the primary friction points for users entering and exiting positions in Ripple's stablecoin, potentially accelerating its adoption among both retail and institutional traders.

Why This Move Matters

Stablecoin trading fees, while often smaller than fees on volatile assets, can accumulate significantly for active traders and institutions moving large volumes. Most major exchanges charge between 0.1% to 0.5% on stablecoin pairs, meaning a $100,000 RLUSD trade could incur $100 to $500 in fees. By offering zero-fee trading, Gemini makes RLUSD more competitive with other stablecoins for use cases like:

• Cross-border payments and remittances – Users can move in and out of RLUSD without fee erosion
• Trading pair base currency – RLUSD now serves as an optional base currency for all spot trading pairs on Gemini, eliminating conversion steps
• Institutional treasury operations – Ripple has integrated RLUSD into its Ripple Payments enterprise product for financial institutions streamlining cross-border settlements

How This Changes the Competitive Landscape

Gemini's fee elimination sets a new standard that could pressure competitors to follow suit. Here's how this compares to the industry status quo:

Current Zero-Fee Stablecoin Offerings:

• Revolut recently introduced zero-cost USDT/USDC swaps for its 65 million users, allowing $1-for-$1 conversions with no markup
• Binance offers zero trading fees on select stablecoin pairs including BUSD, TUSD, and USDC combinations
• Crypto.com previously ran zero-fee campaigns on stablecoin conversions allowing 1:1 swaps between USDC, TUSD, BUSD, and GUSD

What Makes Gemini's Approach Different:

1. Specific focus on RLUSD – Unlike competitors offering zero fees across multiple stablecoins, Gemini is strategically supporting Ripple's ecosystem
2. Base currency integration – RLUSD can be traded against any asset on Gemini in a single step, cutting out conversion fees and complexity
3. Deep partnership with Ripple – Gemini's $75-150 million credit line from Ripple and XRP-focused credit card launch signal a long-term strategic alignment

Implications for XRP and Ripple

While RLUSD is a separate asset from XRP, the stablecoin's growth could create positive spillover effects for Ripple's ecosystem:

Confirmed Benefits:

Increased Platform Engagement
Zero-fee RLUSD trading may attract new users to Gemini, some of whom will discover and trade XRP. When Gemini first listed RLUSD in May 2025, the stablecoin's 24-hour trading volume surged 63.7% to over $52 million.

XRP Ledger Utility Enhancement
RLUSD operates on the XRP Ledger (XRPL), which uses XRP for transaction fees. Increased RLUSD adoption drives more activity on XRPL, creating organic demand for XRP to pay network fees—though the per-transaction cost remains minimal.

Institutional Validation
Gemini's focus on RLUSD adds credibility to Ripple's institutional strategy. Ripple acquired prime brokerage Hidden Road for $1.25 billion in April 2025, with plans to use RLUSD as collateral in trading and settlement services. Major institutions including abrdn, Braza Bank, and Société Générale–Forge have adopted XRPL for payments and cross-border settlements.

Credit Card Integration
Ripple, Mastercard, Gemini, and WebBank are exploring RLUSD settlement for Gemini Credit Card transactions on the XRP Ledger, pending regulatory approval. This could enable faster, more flexible payment processing using stablecoins—a significant real-world use case.

Speculative Impacts (Unconfirmed):

IMPORTANT NOTE: The following scenarios represent speculation about potential future developments, not confirmed plans:

Theory: RLUSD Could Reduce XRP Volatility Concerns
Some observers theorize that businesses hesitant to use XRP due to price volatility might adopt RLUSD for payments while still benefiting from XRPL's speed and low costs. This could indirectly support XRP by proving the viability of the underlying ledger technology.

Why This Might Not Matter:
RLUSD competes with established stablecoins like USDC ($42 billion market cap) and USDT ($147 billion market cap) that already offer similar benefits without requiring businesses to interact with the XRP ecosystem. Ripple's own CEO noted that "very few" of Ripple's hundreds of customers actually use XRP—most prefer traditional settlement methods or other stablecoins.

Reality Check:
Even with zero-fee trading on one exchange, RLUSD faces significant adoption barriers. As one analyst noted, RLUSD's integration hasn't yet moved the needle—XRP's monthly transaction volume actually trended lower throughout 2025 despite RLUSD's launch and exchange listings.

Bottom Line:
While Gemini's zero-fee RLUSD trading is genuinely beneficial for stablecoin users and strengthens Ripple's ecosystem presence, investors should focus on XRP's primary catalysts: potential ETF approvals, regulatory clarity, and actual adoption of XRP (not just RLUSD) for cross-border payments. RLUSD's success may validate Ripple as a company, but won't necessarily translate to XRP price appreciation.

The Broader Stablecoin Fee Wars

Gemini's move reflects an intensifying competition among exchanges to capture stablecoin market share by reducing or eliminating fees:

• Revolut's zero-fee USDT/USDC swaps target its 65 million global users, making stablecoin on/off-ramping cost-effective
• Binance has strategically offered zero fees on select stablecoin pairs to increase liquidity and attract high-volume traders
• Kraken+ subscribers can trade up to $10,000 monthly in major currencies with zero fees

This trend suggests that stablecoin trading may become completely fee-free across major platforms within the next 12-24 months as exchanges compete for user acquisition and retention. For users, this means significantly lower costs for moving between fiat and crypto positions—a key enabler of mainstream adoption.

What This Means for Traders and Investors

For RLUSD Users:
Gemini now offers the most cost-effective way to trade RLUSD, making it attractive for:

• Frequent traders who want to move between RLUSD and other assets without fee accumulation
• Businesses using RLUSD for treasury operations who need seamless fiat/crypto conversion
• Users of Gemini's XRP Credit Card who want to easily switch between XRP rewards and stable value

For XRP Investors:
This development is mildly positive but shouldn't be overweighted in investment decisions. More significant catalysts to monitor include:

• SEC decisions on XRP ETF applications expected between October and November 2025
• Ripple's continued institutional partnerships and actual XRP adoption metrics
• Broader cryptocurrency market trends and regulatory developments

For the Industry:
Gemini's partnership with Ripple—including the credit line, XRP credit card, and now zero-fee RLUSD trading—represents one of the most comprehensive strategic alignments between a major exchange and a specific blockchain ecosystem. This could serve as a model for other exchanges seeking to differentiate through deep partnerships rather than just listing tokens.

Looking Ahead

The success of Gemini's zero-fee RLUSD initiative will depend on whether it meaningfully increases trading volume and user adoption. Gemini went public in September 2025 at a $3.3 billion valuation but has struggled with the stock trading 40% below its debut price and reported losses of $282.5 million in the first half of 2025. The exchange needs strategies like zero-fee trading to attract users and diversify revenue beyond volatile crypto trading fees.

For Ripple, continued expansion of RLUSD infrastructure—including zero-fee trading, credit card settlement integration, and institutional adoption—supports the company's broader vision of becoming a payments infrastructure provider, even if it doesn't directly translate to XRP price appreciation in the near term.

Sources

1. Gemini - RLUSD Price Page
2. Gemini Blog - XRP Credit Card and RLUSD Expansion
3. Crowdfund Insider - Gemini Expands European Operations, Unveils XRP Card
4. CoinGape - Gemini Adds RLUSD: Ripple's Stablecoin Trading Volume Jumps 63%
5. The Crypto Basic - Gemini Lists Ripple Stablecoin RLUSD for Trading
6. Decrypt - Ripple Teams With Mastercard, Gemini to Use RLUSD to Settle Credit Card Transactions
7. AInvest - XRP's Strategic Ecosystem Expansion
8. Brave New Coin - Gemini Launches XRP Credit Card with Rewards as RLUSD Trading Expands
9. Cryptonews - 65 Million Revolut Users Can Now Swap Stablecoins at Zero Cost
10. 99Bitcoins - Best No-Fee Crypto Exchanges in November 2025
11. The Motley Fool - Prediction: XRP (Ripple) Will Soar to This Price in 3 Years
12. CoinGape - XRP Price Prediction: Ripple Swell 2025, ETF Hints, RLUSD Plans

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