XRP Not Competing With Circle, Says Pro-Ripple Lawyer

XRP, the native digital asset of the XRP Ledger, is once again at the center of conversations in the crypto space. This time, speculation over competition with Circle—the creator of the USDC stablecoin—was swiftly put to rest by attorney John Deaton, a prominent supporter of Ripple. As misinformation caused confusion among traders and investors, Deaton clarified the true roles of XRP and Ripple in the evolving blockchain ecosystem.

Concerns emerged after Dave Portnoy, the outspoken CEO of Barstool Sports, claimed he had sold his XRP holdings based on advice that Circle posed a competitive threat to XRP. Shortly after his sale, XRP experienced a surge of over 38% in just two weeks, making it one of the top-performing assets among major cryptocurrencies during that period. Portnoy’s decision, undoubtedly hasty, highlighted how quick judgments based on unclear information can lead to regrettable financial outcomes.

John Deaton responded by debunking these claims directly. He emphasized that XRP is not in competition with Circle. He clarified an important distinction: Ripple—the company behind XRP—might compete with Circle on the business front, but XRP itself is a standalone digital asset and not involved in stablecoin services. According to Deaton, thinking of XRP as being in direct competition with stablecoins like USDC is a fundamental misunderstanding of what XRP is and how it functions.

He further explained that Ripple has recently introduced RLUSD, its own stablecoin, which could be seen as a direct market response to Circle’s USDC. However, RLUSD is distinct from XRP and serves a different purpose altogether. XRP continues to facilitate swift, borderless value transfers on its decentralized public ledger—the XRP Ledger—while RLUSD represents Ripple’s entrance into the stablecoin landscape targeting institutional use cases.

To add context to the relationship between Ripple and Circle, Deaton reminded the crypto community that there were earlier rumors of Ripple potentially looking to acquire Circle. This suggests that the two entities have shared transactional or strategic interests at some point rather than being direct adversaries. The current discussion thus stems more from confusion over roles than from corporate conflict.

Deaton highlighted another key point: both Ripple and Circle operate at the infrastructure layer of the financial technology sector. They both develop tools and platforms to support the broader use of digital currencies. Therefore, their competition, if any, occurs at the level of service provision, not at the level of the assets themselves.

What the recent surge in XRP’s value proves is that separating fact from fiction in the crypto world remains crucial. Investors who misunderstand the roles of various companies and digital assets risk making misguided investment decisions—just as Portnoy confessed when he said, “I want to cry” after selling his XRP too early.

In summary, Deaton’s firm stance reaffirms that XRP, as a digital asset, is not designed to compete with Circle or USDC. Ripple, the company, plays in a different arena where it may compete with Circle through products like RLUSD. But XRP’s purpose remains focused on powering an efficient, decentralized ledger for global transactions—not entering the stablecoin race.

Related: XRP Price: $12M Max Pain for Bears

As digital finance evolves, understanding the difference between infrastructure providers and the digital assets they launch is essential. Misinformation can lead not only to financial disadvantages, as seen in recent events, but also to a general lack of confidence in legitimate blockchain innovations like XRP.