Stablecoins Can’t Kill XRP — Here’s What Most Critics Miss

• Ripple’s RLUSD stablecoin is expanding fast, but experts say it complements rather than replaces XRP in cross-border payments.
• XRP remains crucial as a neutral bridge asset connecting global currencies where stablecoins and CBDCs lack interoperability.

Ripple’s XRP remains a cornerstone in cross-border payments, even as stablecoins dominate the digital finance landscape. While stablecoins attract users seeking low volatility, industry experts maintain they cannot replace XRP’s liquidity function or its efficiency in global money movement.

Ripple’s entry into the stablecoin market via its RLUSD token has sparked debate across the industry. Vibhu Norby, Head of Product Marketing at the Solana Foundation, said this move by Ripple is a sign of adapting to market pressures rather than strategic evolution.

He noted that 90% of RLUSD’s supply exists outside the XRP Ledger, suggesting limited integration with Ripple’s core blockchain ecosystem.

Norby acknowledged Ripple’s successful leadership and strategic execution over the years but argued that the shift shows how Ripple is playing catch-up in the stablecoin race. Despite his skepticism, the market data indicate that RLUSD is gaining a growing presence.

Paul Barron, the host of the Paul Barron Network, stated that RLUSD already has a $1 billion market capitalization, showing Ripple’s ability to execute effectively in even highly competitive sectors.

Barron added that Ripple is developing a more extensive financial infrastructure and that XRP’s bridge functionality and stablecoin-based payment systems are closely intertwined. The integration, he argued, makes Ripple a multi-asset liquidity provider rather than a company reliant on one token.

XRP’s Enduring Edge in Global Payments

Brad Kimes of Digital Perspectives projected that major economies, including those in the G20, may issue state-backed stablecoins or central bank digital currencies (CBDCs) built on the XRP Ledger.

According to Kimes, XRP will continue to serve as a bridge asset, linking these sovereign digital currencies to enhance liquidity and improve transaction efficiency across borders.

He further explained how, while stablecoins enable stability at the local level, they cannot address liquidity fragmentation in the global financial systems. XRP’s value lies in its ability to act as a currency bridge, decreasing friction between separate currencies that cannot be achieved with stablecoins, such as fiat currency reserves.

The Structural Limits of Stablecoins

Molly Elmore of Valhil Capital argued that stablecoins, despite their apparent advantages, fail to address structural monetary challenges such as the Triffin Dilemma.

She explained that when a currency serves both domestic and international roles, it creates a conflict between national policy and global liquidity needs. Stablecoins, she said, merely digitize the issue without resolving it.

Elmore also highlighted the centralized nature of many stablecoin issuers, in contrast to XRP’s decentralized ecosystem. That distinction, she said, bolsters XRP’s role in a financial system moving toward decentralized interoperability.

Ripple’s CEO Brad Garlinghouse reaffirmed the company’s commitment to XRP, clarifying that its expansion into stablecoins complements rather than replaces the token’s role.

Data from RWA.xyz shows that RLUSD issued on Ethereum currently accounts for around 80% of the total supply, while the XRP Ledger version represents roughly 20% and continues to grow steadily. 

As CNF recently reported, Citi Group analysts expect the stablecoin market to reach about $1.9 trillion by 2030, potentially climbing to $4 trillion under accelerated adoption scenarios.