USDC on XRP Under Fire: Can It Challenge Stellar’s Stablecoin Dominance in 2025?

Stablecoin wars heat up as USDC's XRP integration faces skepticism—while Stellar digs in as the incumbent.

XRP's USDC play: innovation or desperation?

Ripple’s blockchain pushes into stablecoins, but liquidity and trust gaps linger. Meanwhile, Stellar’s established network keeps processing billions without breaking a sweat—proving sometimes boring infrastructure wins.

Finance jab: TradFi banks still can’t decide if stablecoins are ‘the future’ or ‘a regulatory headache’—so they’re shorting both.

RLUSD Faces Adoption Challenges

Ripple introduced RLUSD as a native stablecoin on the XRP Ledger earlier this year, hoping to establish it as a foundation for payments and tokenized assets. However, available data indicates that adoption has remained low. Fewer than 50,000 trustlines have been created for RLUSD, and it has seen limited traction in business or institutional use cases.

Due to this underperformance, Ripple has opted to introduce USDC, a widely used dollar-backed stablecoin issued by Circle, as an alternative option on its network.

USDC Integration May Not Directly Benefit XRP

While adding USDC to the XRP Ledger may increase the range of supported assets, it does not guarantee increased utility or demand for XRP itself. Some analysts argue that enabling a third-party stablecoin on a blockchain doesn’t automatically improve the underlying token’s value, especially if users interact with the network without holding XRP.

Additionally, USDC already operates on several established networks—including Ethereum, Solana, and Stellar—raising questions about how XRP will differentiate itself in this crowded space.

Stellar Continues Steady Growth

Meanwhile, Stellar has been developing its stablecoin infrastructure since 2021, when it added support for USDC. The network has grown steadily, with:

• Over 1.5 million trustlines

• Active wallets in developing regions

• Merchant adoption in markets across Africa, Asia, and Latin America

These metrics suggest regular usage beyond speculative trading. Businesses and nonprofit organizations have used Stellar to facilitate low-cost remittances and payment transfers, supported by real-world partnerships.

Broader Ecosystem Advantages

Stellar’s progress extends beyond stablecoin usage. Its Soroban smart contract platform is now operational, supporting programmable financial tools and decentralized applications. The network also supports PayPal’s PYUSD, further expanding its stablecoin coverage.

Stellar’s collaborations with institutions such as Franklin Templeton and WisdomTree, as well as participation in UN-backed humanitarian payment programs, reflect a growing role in both the private and public sectors.

These developments point to a network that has already demonstrated its utility in real-world environments.

XRP Ledger’s Adoption Path Still Unclear

The XRP Ledger has the technical capability to support tokenized assets and stablecoins, but it has seen limited business integration outside of Ripple’s internal projects. With RLUSD gaining little traction, USDC may provide a more practical solution for users seeking stable transactions on the network.

However, introducing USDC does not address the root challenge: building an ecosystem where XRP plays a central, irreplaceable role. If developers and institutions can interact with the XRP Ledger using only USDC, it raises concerns about long-term demand for XRP.

Comparisons Between the Networks

In comparing XRP and Stellar:

• Stellar has a longer track record of supporting stablecoin integration with USDC.

• Stellar’s ecosystem includes smart contracts and operational programs in various countries.

• XRP’s use cases remain concentrated around RippleNet and Ripple-affiliated partnerships.

By introducing USDC at this stage, the XRP Ledger is adopting a model already in place elsewhere—but it may take more than technical integration to create sustained adoption or increased utility for XRP itself.

Looking Ahead

The integration of USDC on XRP may help bring short-term liquidity and enable compatibility with existing apps. However, without a broader framework for driving demand for XRP, the impact may remain limited.

Stellar’s early investment in building out infrastructure and partnerships appears to be paying off. Its stablecoin support, real-world deployments, and growing developer tools provide a more mature foundation for cross-border and institutional use.

As both networks continue to evolve, their success will likely depend on how effectively they deliver value not just to traders, but also to developers, businesses, and users in real economic environments.