XRP Strengthened by RLUSD, Not Replaced

XRP remains at the heart of Ripple’s blockchain ecosystem, even as the company introduces its own stablecoin, RLUSD. Amid discussions sparked within the XRP community, influential voices are asserting that RLUSD will enhance XRP’s relevance—rather than diminish it—by adding a stabilizing layer to the XRP Ledger network.

The idea that RLUSD could weaken XRP’s utility has been circulating, but seasoned analysts and supporters argue the opposite. In fact, they emphasize that RLUSD is poised to deepen XRP’s foundational role, not compete with it.

XRP Still Leads in Pathfinding on XRPL

Recent insights shared by the well-followed account “All Things XRP” highlight XRP’s continued dominance in transaction routing across the XRPL. Thanks to its position as the native bridge asset on the ledger, the built-in pathfinding algorithm typically favors XRP over other assets—even new entrants like RLUSD—when determining the most efficient route for cross-currency payments.

This structural advantage ensures that XRP remains integral to the ledger’s operations. Compared to stablecoins, XRP offers faster processing, enhanced liquidity, and lower transaction fees. These traits further solidify its role, even as additional digital assets are introduced to the ecosystem.

RLUSD Adds Value by Filling a Gap

The primary goal of RLUSD is to bring a price-stable asset into the XRPL framework, particularly helpful for institutional applications like treasury management and cross-border settlements. While XRP’s volatility can be problematic in these cases, RLUSD provides a stable alternative without negating XRP’s utility.

As highlighted in a detailed analysis from recent developments, the introduction of RLUSD could attract more institutional participation to the XRPL. This, in turn, might boost XRP’s usage overall, as institutions increase transactions within the same ecosystem. More activity naturally leads to more demand for XRP’s native services, such as On-Demand Liquidity (ODL) and inter-currency bridging.

Moreover, the narrative among informed XRP supporters has consistently been that RLUSD should be seen as a strategic enhancement. It’s seen as an additive force that allows more diverse financial instruments to thrive on the XRP Ledger—while further reinforcing the core function of XRP itself.

Ripple Executives Reaffirm XRP’s Core Role

David Schwartz, Ripple’s CTO, addressed growing speculation regarding the role of RLUSD versus XRP. In a previous statement reassuring the community, Schwartz confirmed that XRP remains essential for paying transaction fees on the XRPL. While RLUSD offers benefits in scenarios demanding price stability, XRP’s volatility makes it invaluable for decentralized finance applications where short-term pricing advantages are leveraged.

Schwartz emphasized that stablecoins are not meant to replace XRP, but to extend the list of use cases the ecosystem can handle. He also rejected proposals from the community that suggested increasing transaction fees to artificially create scarcity and boost XRP value. Schwartz maintained that such speculative strategies go against the ledger’s utility-driven mission.

CEO Brad Garlinghouse Aligns on Strategy

Ripple’s CEO, Brad Garlinghouse, has voiced full support for integrating RLUSD into Ripple’s network, emphasizing its complementary nature. As noted in earlier commentary, he sees the stablecoin as a means to bolster liquidity and improve access for enterprise clients and blockchain users—without replacing XRP.

Garlinghouse’s remarks underline Ripple’s dual commitment to innovation and stability. RLUSD serves a unique institutional need, while XRP continues to anchor the technological and financial operations of the ledger.

Related: Expert Advice: Sell XRP If You’re Confused

In sum, the introduction of RLUSD is not a threat to XRP’s dominance—it’s a strategic reinforcement. The two assets serve different, yet highly complementary, functions. Together, they are shaping a more robust, scalable future for the XRP Ledger, promising both growth and sustainability in Ripple’s evolving ecosystem.