XRP News Today: Ripple's Diversified Revenue Model Eliminates XRP Sell-Pressure, Boosts Value

Ripple's CTO David Schwartz has delivered a pivotal revelation about the company's evolving business model, reframing the narrative around its stablecoin RLUSD and its impact on XRP. For years, critics warned that Ripple's foray into stablecoins and enterprise solutions could undermine XRP's value by competing for market attention. Schwartz, however, argues the opposite: RLUSD and other revenue-generating initiatives are not threats but catalysts for removing the structural sell-pressure that has historically constrained XRP's price.

Ripple's revenue strategy has undergone a significant transformation since 2018, when the company relied heavily on XRP sales to fund operations. This model created a self-perpetuating cycle: lower revenue forced Ripple to sell more XRP, exacerbating downward price pressure. "Most of Ripple's income came from selling XRP," Schwartz acknowledged, highlighting how this dependency fueled investor concerns about token dumping. The company's shift toward diversified revenue streams, including RLUSD, enterprise payment solutions, and a global payments network, has disrupted this dynamic.

The RLUSD stablecoin, launched in 2024, is designed to coexist with XRP rather than compete with it. While RLUSD serves as a stable, fiat-pegged asset for liquidity and settlement, XRP remains positioned as a high-speed, cross-border liquidity tool. By generating recurring income through these products, Ripple has reduced its reliance on XRP sales, creating a self-sustaining financial model. "Growth no longer depends on selling XRP," Schwartz emphasized, noting that the company's expanding enterprise services now fund operations independently of token reserves.

This transition has critical implications for XRP's long-term value. With Ripple's revenue diversification, the company no longer needs to liquidate its XRP holdings to maintain operations, effectively eliminating a key source of downward pressure on the token's price. Analysts have pointed out that a profitable Ripple is less likely to offload XRP, reinforcing its role as a utility asset within the ecosystem rather than a cash-flow tool. "This is the first time Ripple is truly breaking away from the old dependency model," Schwartz stated, underscoring the shift toward a sustainable, enterprise-grade infrastructure.

The broader market is beginning to recognize this evolution. By removing sell-pressure from the equation, Ripple's innovations could unlock new growth potential for XRP, positioning it as the core utility token in a diversified financial ecosystem. For investors, the implications are clear: a Ripple that no longer depends on XRP sales is one that can scale without compromising the token's value proposition.