Stablecoins vs. XRP: Will the Rise of Digital Dollars Make Ripple Obsolete?

The crypto world''s obsession with stablecoins is reaching fever pitch—but what does it mean for legacy players like XRP?

Banks and institutions are flocking to USDC and USDT for cross-border settlements. Faster, cheaper, and (allegedly) safer than traditional rails. Ripple’s once-unique value proposition? Suddenly under siege.

Yet XRP loyalists aren’t surrendering. The token still dominates liquidity corridors in emerging markets—where dollar-pegged stablecoins face regulatory landmines. Volatility hedge? DeFi gateway? The battle lines are drawn.

One thing’s certain: Wall Street’s sudden love affair with ‘crypto-lite’ stablecoins reeks of the same short-termism that birthed 2008’s synthetic CDOs. Some bridges burn better than others.

It’s a big day for the crypto world. The US Senate has officially passed the Genius Act, an important stablecoin bill. With a strong 68-30 vote, the bill will now move to the House, where it’s expected to pass quickly before heading to President Trump’s desk for final approval.

This new law could reshape the stablecoin market in the US, with clear rules for companies like Circle’s USDC and other dollar-backed digital assets. While crypto enthusiasts are celebrating this progress, it has sparked fresh debate about what it means for other major players like XRP.

There is a worry that the rise of regulated, fast, and reliable stablecoins could reduce the need for XRP in cross-border payments and liquidity solutions. However, according to an industry expert, this could actually boost XRP’s utility by giving banks and businesses more ways to MOVE money while still needing a bridge asset like XRP for certain markets and transactions.

People think stablecoins reduce XRP''s need. Wrong. $27T in Nostro/Vostro accounts could grow to $50T+ because banks won''t trust competitors'' coins. XRP becomes the neutral bridge.

Currently, there are approximately $27 trillion in Nostro/Vostro accounts, which banks use to settle cross-border payments. The expert said that this number could shoot past $50 trillion because banks are unlikely to trust each other’s stablecoins. And that is where XRP steps in. 

XRP: The Neutral Bridge

XRP’s role becomes vital as a neutral, decentralized bridge asset. Therefore, instead of being replaced, XRP could be relied on as the only neutral asset that banks can trust. This positions it as a key player in global value transfer.

A recent post from the Britto community, dedicated to the co-creator of the XRPL, Arthur Britto, also clarified that the view of stablecoins replacing XRP overlooks the key differences between the two.

Stablecoins Hold Value, XRP Moves It

While stablecoins are digital versions of fiat (like USD or EUR), meant for holding value, not transferring it across systems. For example, sending money from Japan to Mexico using stablecoins is complex. But with XRP, the transfer happens instantly without needing pre-funded accounts.

XRP’s decentralized liquidity and speed make it better suited for global transfers, while stablecoins still rely on centralized control. Therefore, even while stablecoins are gaining momentum and regulatory clarity, they will not replace XRP in what it does best – moving value across borders quickly and efficiently.