The crypto community has been buzzing with speculation about Ripple’s upcoming stablecoin, RLUSD, and its potential impact on XRP. A former Ripple employee—closely involved in the development of Ripple’s On-Demand Liquidity (ODL), now known as Ripple Payments—has stepped forward with insider insights that clarify a critical question: Will RLUSD hurt XRP? The answer, according to this expert, is a resounding no. In fact, RLUSD is poised to strengthen XRP’s role in global finance.
This revelation came during a recent conversation with Tony Edward, host of the Thinking Crypto podcast. As someone who helped build one of Ripple’s core financial infrastructure tools, the former insider brings credibility and depth to the discussion—making their perspective essential for investors and XRP enthusiasts alike.
RLUSD and XRP: A Strategic Liquidity Partnership
One of the most significant takeaways from the discussion is the expected pairing of RLUSD with XRP across trading platforms and financial applications. This integration isn’t incidental—it’s strategic.
👉 Discover how emerging stablecoin-XRP pairings are reshaping digital liquidity
The insider confirmed they’ve long advocated for Ripple to launch its own stablecoin. When asked whether RLUSD could cannibalize XRP’s utility, especially in cross-border payments, they argued the opposite: RLUSD will rely on XRP for liquidity.
XRP is one of the most widely listed digital assets across centralized and decentralized exchanges. Its deep market liquidity makes it an ideal bridge asset for stablecoins like RLUSD. By pairing RLUSD with XRP, Ripple can ensure faster settlement, tighter spreads, and more reliable price stability—critical factors in both retail and institutional adoption.
Moreover, this symbiotic relationship could help prevent de-pegging events—a common vulnerability among algorithmic or undercollateralized stablecoins. With XRP acting as a liquidity backbone, RLUSD gains resilience during periods of high volatility or market stress.
Beyond technical advantages, the insider emphasized that RLUSD opens new doors in forex trading, remittances, and decentralized finance (DeFi). These sectors demand stable valuation units but still benefit from blockchain speed and transparency. RLUSD fills that gap—while simultaneously reinforcing XRP’s position as a core settlement asset.
Addressing Community Concerns: Is RLUSD Replacing XRP?
Despite these promising developments, skepticism remains within parts of the crypto community. Some fear that RLUSD signals a shift away from XRP—particularly in Ripple’s cross-border payment solutions. The theory goes: Why use a volatile asset like XRP when a stablecoin can do the job?
This concern stems from a misunderstanding of how modern payment rails function. Stablecoins excel at value preservation and pricing clarity, but they often lack native liquidity across fragmented markets. That’s where XRP comes in.
Ripple’s CTO, David Schwartz, addressed this head-on during the 2024 XRP Ledger Apex Summit. He explained that stablecoins and volatile assets serve different roles in DeFi ecosystems. While stablecoins offer predictability, assets like XRP provide the liquidity depth needed for efficient trading and bridging.
Schwartz emphasized that RLUSD isn’t meant to replace XRP—it’s designed to expand the use cases within the XRP Ledger (XRPL). By introducing a native, trusted stablecoin, Ripple enhances the overall functionality of its network, making it more attractive to developers, financial institutions, and payment providers.
Ripple CEO Brad Garlinghouse echoed this view, stating that RLUSD will improve on-ramps and off-ramps for users entering and exiting the ecosystem. Easier fiat integration means more people can access XRP-based services without friction—ultimately driving demand for XRP itself.
In short: RLUSD complements XRP—it doesn’t compete with it.
The XRP Community Responds: FUD vs. Reality
Unsurprisingly, news of RLUSD’s benefits didn’t come as a surprise to many seasoned members of the XRP community.
Vet, a well-known XRPL validator, responded to the insider’s comments by affirming that RLUSD is a net positive for the XRP Ledger. He dismissed opposing views as fear, uncertainty, and doubt (FUD), noting that anyone familiar with XRPL’s architecture understands how stablecoins enhance—not undermine—its value proposition.
Vet also added that while launching RLUSD earlier might have accelerated ecosystem growth, it’s better late than never. Hindsight makes perfect timing easy to identify, but building compliant, scalable financial products takes time—especially under regulatory scrutiny.
Another community member pointed out that this debate has already been settled among experts. The idea that RLUSD threatens XRP is outdated and fails to account for how multi-asset blockchains operate in practice.
👉 See how top blockchain networks integrate stablecoins to boost native token utility
Why This Matters for the Future of XRPL
The introduction of RLUSD represents more than just another token on the ledger—it marks a maturation of the XRPL ecosystem.
With RLUSD:
- Developers gain access to a predictable unit of account for dApps.
- Institutions get a compliant, transparent way to manage dollar-denominated transactions.
- Retail users enjoy faster, cheaper cross-border transfers backed by stable value.
And behind all of this? XRP remains central.
Every time RLUSD is traded, swapped, or used in a liquidity pool involving XRP, it generates additional demand for the underlying asset. Every new user who enters via RLUSD becomes a potential long-term participant in the broader XRP economy.
Furthermore, having a native stablecoin strengthens XRPL’s competitiveness against other Layer 1 blockchains like Ethereum, Solana, and Tron—all of which host multiple USD-pegged tokens. With RLUSD, Ripple asserts control over quality, compliance, and integration efficiency.
FAQ: Your Questions About RLUSD and XRP Answered
Will RLUSD replace XRP in Ripple’s payment solutions?
No. RLUSD is designed to complement XRP, not replace it. While RLUSD offers price stability, XRP provides unmatched liquidity and settlement speed—making them partners in cross-border transactions.
How does RLUSD benefit XRP holders?
Increased adoption of RLUSD leads to higher trading volume between RLUSD and XRP pairs. This boosts liquidity demand for XRP and reinforces its utility across exchanges and DeFi platforms.
Can RLUSD de-peg like other stablecoins?
While no stablecoin is immune to risk, pairing RLUSD with XRP adds an extra layer of liquidity support. This design choice helps maintain peg stability even during market turbulence.
Who controls RLUSD issuance?
As Ripple’s official stablecoin, RLUSD is expected to be fully backed and regulated under U.S. financial standards, ensuring transparency and trust.
Does RLUSD run on XRPL only?
Yes. RLUSD is natively issued on the XRP Ledger, leveraging its fast settlement (3-5 seconds) and low transaction costs (<$0.01).
Will other stablecoins still matter on XRPL?
Absolutely. While RLUSD may become a flagship asset, competition from third-party stablecoins fosters innovation and gives users choice.
👉 Explore leading platforms where RLUSD-XRP dynamics are already taking shape
Final Thoughts: Synergy Over Substitution
The narrative that RLUSD threatens XRP has run its course. With input from former Ripple developers, current executives, and key validators—all aligned on the same message—it’s clear that RLUSD strengthens the entire XRP ecosystem.
Rather than viewing stablecoins and volatile assets as rivals, we should see them as complementary forces. One offers stability; the other offers liquidity. Together, they create a more robust financial network—one capable of serving banks, businesses, and individuals worldwide.
As the lines between traditional finance and blockchain continue to blur, Ripple’s dual-asset strategy positions XRP not just as a digital asset—but as foundational infrastructure for the future of money.
Keywords: RLUSD, XRP, Ripple, stablecoin, XRPL, On-Demand Liquidity, DeFi, cross-border payments