Expert Explains How XRP Could Benefit from the Launch of Ripple’s RLUSD Stablecoin

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The cryptocurrency landscape is evolving rapidly, and Ripple is at the forefront of this transformation with its upcoming stablecoin, Ripple USD (RLUSD). As beta testing progresses on both the XRP Ledger (XRPL) and Ethereum networks, speculation is mounting about how this new digital dollar could reshape the ecosystem—particularly for XRP. While some initially feared RLUSD might replace XRP in Ripple’s On-Demand Liquidity (ODL) system, experts now suggest a more collaborative future where both assets thrive.

This development isn’t just a technical upgrade—it could be a catalyst for increased utility, network activity, and long-term demand for XRP. Let’s explore how RLUSD’s rollout may actually strengthen, rather than diminish, XRP’s role in global payments.

Understanding RLUSD: Ripple’s New Dollar-Pegged Stablecoin

Ripple USD (RLUSD) is a U.S. dollar-pegged stablecoin designed to enhance cross-border transaction efficiency. Currently in private beta on XRPL and Ethereum, RLUSD represents a strategic move by Ripple to expand its footprint in institutional finance and decentralized payments.

Unlike volatile cryptocurrencies, RLUSD maintains a 1:1 value with the U.S. dollar, making it ideal for settlements, remittances, and liquidity management. Its dual-chain deployment allows flexibility across ecosystems, but its integration with the XRP Ledger is especially significant.

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What sets RLUSD apart from other stablecoins like USDT or USDC is Ripple’s strong emphasis on regulatory compliance. With MiCA (Markets in Crypto-Assets Regulation) reshaping Europe’s crypto landscape, many platforms have restricted access to non-compliant tokens. Ripple’s proactive approach ensures RLUSD is built to meet evolving standards—potentially giving it an edge in adoption across regulated markets.

XRP’s Role in the XRPL Ecosystem

While RLUSD handles value transfer stability, XRP remains the lifeblood of the XRP Ledger. It serves multiple critical functions:

Crypto analyst Eri recently highlighted a key analogy: just as ETH powers Ethereum transactions, XRP powers the XRPL. Every transaction on the ledger—whether it involves RLUSD, CBDCs, or other tokens—requires a small amount of XRP to validate and process.

“Just as #ETH is used for gas, #XRP is also used for gas (among other things). Since the SEC Docs explained ODL is price neutral, bring on as much of that stablecoin gas transaction activity on the #XRPL Mainnet as possible. Trillions please.”
— Crypto Eri (@sentosumosaba), September 8, 2024

This insight underscores a powerful dynamic: more transactions = more XRP burned in fees = increased scarcity and potential demand.

Even if RLUSD becomes the preferred settlement asset in ODL flows, every transfer still requires XRP to function at the protocol level. This creates a symbiotic relationship—where growth in RLUSD usage directly fuels greater network demand for XRP.

Could RLUSD Drive Trillions in XRPL Activity?

Eri speculated that widespread adoption of RLUSD could bring “trillions” of transactions onto the XRPL Mainnet. While that number may sound ambitious, consider the scale of global remittances: over $850 billion was sent internationally in 2023 alone (World Bank data). Even capturing a fraction of that market would generate massive transaction volume.

Each of these transactions—whether initiated in euros, yen, or pesos and settled in RLUSD—must pass through the XRPL, consuming XRP in the process. Over time, this sustained activity can:

Moreover, Ripple has been actively engaging central banks and financial institutions on Central Bank Digital Currencies (CBDCs) and payment modernization. RLUSD could act as a compliant bridge between traditional finance and blockchain rails—further amplifying XRPL usage.

Addressing Misconceptions: Will RLUSD Replace XRP?

Early speculation suggested Ripple might phase out XRP in favor of RLUSD for ODL transactions. However, Ripple CTO David Schwartz clarified that XRP will continue to be used wherever it provides optimal performance.

ODL’s core function remains unchanged: enabling instant, low-cost cross-border payments without pre-funded accounts. While stablecoins like RLUSD offer price stability during settlement, XRP excels as a bridge asset in volatile or less liquid corridors.

Additionally, regulatory disclosures—including those from the ongoing SEC case—confirm that ODL operations are price-neutral regarding XRP. That means Ripple doesn’t manipulate markets or rely on XRP appreciation to make ODL profitable.

But here’s the nuance: even if ODL doesn’t directly push up XRP’s price, indirect effects matter. Higher transaction volume → more XRP burned → tighter supply dynamics → upward pressure on price over time.

One community member referenced former Ripple advisor Bob Way’s claim that market makers could profit from ODL volume via spreads and fees, potentially boosting XRP’s value. Eri responded by noting that ODL’s delivery model has evolved significantly since then—now prioritizing efficiency, scalability, and compliance over speculative mechanics.

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The Bigger Picture: A Multi-Token Future on XRPL

Rather than viewing RLUSD as competition, it’s more accurate to see it as complementary infrastructure within Ripple’s broader vision. The future of XRPL isn’t about one token dominating—it’s about interoperability.

Imagine a world where:

This multi-token ecosystem increases the overall utility of the ledger—and by extension, the foundational asset: XRP.

Every interaction requires transaction fees paid in XRP. Whether you're swapping RLUSD for a CBDC or routing funds through an ODL corridor using XRP as a bridge, XRP remains essential.

Frequently Asked Questions (FAQ)

Q: Does RLUSD replace XRP in Ripple’s payment solutions?

A: No. RLUSD complements XRP by offering price stability, while XRP continues to serve as the native utility token for transaction fees and liquidity bridging on XRPL.

Q: Will RLUSD increase demand for XRP?

A: Yes, indirectly. More transactions involving RLUSD on XRPL mean higher gas consumption, leading to increased demand and potential scarcity of XRP due to fee burning.

Q: Is ODL designed to boost XRP’s price?

A: According to Ripple and SEC documents, ODL is price-neutral. Its goal is operational efficiency, not market manipulation. However, increased adoption can create organic demand for XRP.

Q: How does RLUSD differ from USDT or USDC?

A: RLUSD is built with strong regulatory compliance in mind, aligning with frameworks like MiCA. This positions it favorably for institutional and cross-border use compared to stablecoins facing regulatory scrutiny.

Q: Where is RLUSD being tested?

A: RLUSD is currently in beta testing on both the XRP Ledger Mainnet and Ethereum blockchain.

Q: When will RLUSD launch publicly?

A: Ripple CEO Brad Garlinghouse indicated a public launch is expected within weeks as final testing wraps up and regulatory approvals are confirmed.

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Conclusion

The introduction of RLUSD isn’t a threat to XRP—it’s an accelerator. By driving institutional adoption, enhancing compliance, and increasing transaction volume on XRPL, RLUSD has the potential to make XRP more relevant than ever.

As stablecoin usage grows, so too will the demand for the underlying infrastructure that supports it. In this case, that foundation is the XRP Ledger—and its indispensable utility token, XRP.

With trillions in global payments at stake, Ripple isn’t just building another digital dollar. It’s constructing a scalable, compliant, and efficient financial layer for the future—one where both RLUSD and XRP play vital roles.

For investors and users alike, the message is clear: increased network activity means increased opportunity.

Core Keywords: XRP, RLUSD, Ripple USD, XRP Ledger, stablecoin, ODL, cross-border payments, blockchain interoperability