Ripple’s RLUSD Won’t Kill XRP - Here’s the Real Story
Ripple's new stablecoin, RLUSD, sparks debate: Is it a rival or a partner to XRP? The answer lies in utility, not headlines.
Complementary, Not Competitive
RLUSD targets a different market segment. Think of XRP as the high-speed rail for cross-border settlements—volatile, but built for speed and cost-efficiency. RLUSD aims to be the digital dollar in the station: a stable unit of account for on-chain lending, trading, and payments where price predictability is king. They serve different masters within the same financial ecosystem.
XRP's Liquidity Engine Gets a Boost
A thriving RLUSD ecosystem could actually funnel more activity through the XRP Ledger. More developers building stablecoin-powered applications means more transactions needing settlement—and XRP remains the native fuel for those settlements. It's a classic network effect play, not a zero-sum game. More volume on the ledger strengthens XRP's core utility proposition.
The Institutional Bridge Strengthens
Ripple's real play isn't about pitting one token against another. It's about building the most comprehensive bridge between traditional finance and crypto. XRP solves the cross-border value transfer problem. RLUSD solves the on-chain stability problem for institutions allergic to volatility. Together, they form a more compelling suite for the very banks and payment providers Ripple courts—a one-stop shop for modern finance, complete with the compliance overhead that makes Wall Street comfortable.
So, is RLUSD a threat? Hardly. It's a strategic expansion. In a world where crypto projects often chase the shiny new thing at the expense of their core product—a classic case of 'innovator's dilemma' funded by vaporware promises—Ripple is simply laying another rail on its existing track. The future isn't about one token to rule them all; it's about the right tool for the job. And for Ripple's vision, that toolbox just got bigger.
Why Ripple’s RLUSD Poses No Danger To XRP
In his post, XFinanceBull revealed that many in the crypto community now see XRP as less useful because of RLUSD. These concerns carry weight given the growing dissatisfaction over XRP’s price struggles. Furthermore, with a stablecoin in place, the perception is that XRP’s use cases could deteriorate, especially given RLUSD’s greater stability.
Addressing these growing concerns, XFinanceBull emphasized that XRP and RLUSD serve different purposes within the ecosystem. His commentary aims to correct the misconception that RLUSD was introduced to replace XRP. The analyst referenced statements from Ripple’s former Chief Technology Officer (CTO), David Schwartz, who, in a video, clearly explained the distinct roles of XRP and RLUSD, highlighting how the stablecoin benefits the altcoin rather than threatens it.
According to XFinanceBull, Schwartz stated that RLUSD attracts large, credible flows to the XRP Ledger (XRPL), and this capital provides structural benefits to XRP. The analyst declared that RLUSD does not replace XRP, but instead amplifies its functionality. He added that as liquidity grows through the stablecoin, more payment routes are created, leading to increased XRP burns.
XFinanceBull also noted that every stablecoin trade within the Ripple ecosystem indirectly drives demand for XRP as a bridge asset. He concluded that the world will eventually realize that utility is not defined by a whitepaper alone, but by real transaction flows. He added that although the xrp price may be declining, its rails are still being built.
How RLUSD Benefits XRP
In the video shared by XFinanceBull, Schwartz stated that RLUSD is designed to benefit XRP. He explained that RLUSD strengthens XRP by introducing more credible assets onto the XRP Ledger, thereby expanding the network’s use cases and creating more opportunities for developers.
The former Ripple CTO also revealed that adding trusted assets, such as RLUSD, increases trading activity on XRPL’s DEX. According to him, higher trading volume generates both direct and indirect benefits for the decentralized network and its native token, XRP.
A key advantage of the XRPL DEX is its auto-bridging feature, which uses XRP to facilitate trades between different assets. Schwartz said that this mechanism allows XRP to act as an intermediary, helping users find the most efficient trading routes. He added that RLUSD and XRP are designed to complement each other, given their different roles within the ecosystem. While the stablecoin offers price stability, the altcoin functions as a bridge currency within Ripple’s payment products. This means that as RLUSD usage grows, demand for XRP is reinforced.
