Bill Morgan Declares Bridge Currencies Like XRP Outperform Stablecoins in Crypto Efficiency

Forget stablecoins—bridge assets are stealing the spotlight. Legal expert Bill Morgan just dropped a truth bomb that's rippling through crypto circles: currencies designed for seamless cross-border movement, like XRP, fundamentally outclass their pegged counterparts.

The Architecture Advantage

Unlike stablecoins that tether to off-chain assets and inherit their volatility, bridge currencies operate with native blockchain efficiency. They slash settlement times from days to seconds and bypass the regulatory quagmire that plagues asset-backed tokens. No banking partners, no reserve audits—just pure cryptographic execution.

Why TradFi Hates This

This isn’t just about speed. It’s about dismantling the legacy financial gatekeeping that’s been charging rent on every cross-border transaction since forever. Bridge currencies don’t ask for permission—they validate and move. Meanwhile, stablecoins still play by old-world rules, begging for approval from the very institutions they pretend to disrupt.

Of course, bankers love stablecoins—they’re just digital IOUs that keep the existing power structure intact. Bridge currencies? They actually change the game.

The debate over stablecoins versus bridge currencies is heating up. Industry experts are weighing in on how different crypto assets fit into cross-border payments, treasury management, and their effectiveness as an inflation hedge.

Bill Morgan recently highlighted on X out that stablecoins like RLUSD and USDT come with several limitations when compared to a bridge currency such as XRP, which can move value quickly and efficiently across borders.

Stablecoins Have Limitations

He points out that stablecoins rely on a counterparty to maintain their value. Although not often mentioned, they are not finite; for example, Tether can be minted at will. They are tied to fiat currencies such as the USD, which steadily lose purchasing power due to inflation. 

Stablecoins such as RLUSD and USDT have several disadvantages compared to a bridge currency such as XRP:

1. There is a counterparty.
2. No one mentions it, but they are not finite. Tether for example is minted at will;
3. They are tied to fiat such as the USD. That is hardly a…

He notes that stablecoins are pegged to national currencies and are not universal in a global context, which can be affected by competing policies.

Furthermore, he went on to say that stablecoins are inferior treasury assets and are not a hedge against inflation. He emphasized the need for neutral bridge currencies without those limitations.

XRP Leads as a Bridge Currency

Previously, Ripple CTO, David Schwartz, has also expressed that “XRP’s use as a bridge in Ripple Payments dwarfs every other asset.” While he notes that stablecoins are useful as collateral or for edge use cases, XRP and other top-tier digital assets are generally better for most purposes.

He further added that the growing real-world financial use of the XRPL will increase XRP’s utility and value.

Stablecoin Growth Could Boost XRP

Industry expert Jake Claver also notes that with trillions held in Nostro and Vostro accounts, banks are unlikely to trust competitor stablecoins. This reinforces XRP’s role as a neutral bridge currency.

RLUSD Gains Traction

Jack McDonald, Ripple’s Senior Vice President of stablecoins, also highlighted that RLUSD is increasingly integrated into traditional finance, serving as collateral, enabling cross-border settlements, and now facilitating IPO payments.

Morgan recently praised the RLUSD stablecoin, highlighting its use of BNY Mellon for reserve custody, in contrast to Tether’s lack of an independent custodian.

RLUSD is also making waves in the stablecoin market, with its market cap rising from $577 million to over $700 million.