XRP News Today: Ripple Launches RLUSD as XRP's Role in XRPL Gains Clarity

The introduction of Ripple’s USD-pegged stablecoin, RLUSD, has prompted discussions within the XRP community about its potential impact on the native asset’s role in the XRP Ledger (XRPL) ecosystem. According to analysis from crypto commentator All Things XRP, the launch of RLUSD is more likely to enhance rather than undermine XRP’s significance [1]. The post, published by TimesTabloid, highlights several key factors that suggest XRP holders should view the emergence of RLUSD as a positive development for the broader XRPL network.

A central argument presented is that XRP holds a unique and irreplaceable position within the XRPL. As the only token that can be used to pay transaction fees, XRP is accessible to all accounts without requiring trust lines and operates without counterparty risk, freezes, or clawbacks [1]. Unlike RLUSD, which is an issued asset dependent on Ripple as its issuer, XRP is deeply integrated into the ledger’s code and functions independently of any single entity. This structural advantage ensures that XRP remains essential to the network’s operation, regardless of RLUSD’s adoption rate.

Furthermore, the use of RLUSD does not eliminate the need for XRP. Every transaction on the XRPL—regardless of whether it involves RLUSD or another token—requires a small amount of XRP to be burned as a fee [1]. This implies that increased adoption of RLUSD would likely lead to more network activity, which in turn would sustain and potentially boost the baseline demand for XRP. As transaction volume rises, so does the consumption of XRP, reinforcing its role as a utility asset within the ledger.

The XRPL’s decentralized exchange (DEX) also plays a key role in reinforcing XRP’s importance. Through a mechanism known as autobridging, the DEX automatically routes trades through XRP to optimize liquidity and transaction efficiency [1]. As more RLUSD trading pairs are added, the frequency of autobridging events is expected to increase, further driving XRP usage in cross-asset trades. This dynamic highlights a complementary relationship between RLUSD and XRP, with each asset serving a distinct but interconnected function within the XRPL.

Concerns about RLUSD potentially replacing XRP have also been addressed. Ripple’s Chief Technology Officer, David Schwartz, has stated that RLUSD will not supplant XRP’s core functions [1]. The analysis argues that for any stablecoin to replace XRP, it would need to outperform its protocol-level integration and universal acceptance across the XRPL. Given XRP’s deep integration into the ledger’s architecture and its independence from a single entity, such a scenario is considered highly unlikely.

In addition, the decentralized governance of the XRPL limits Ripple’s control over the network. The company operates only around one percent of the network’s validators [1], ensuring that it does not have unilateral control over the ledger or the ability to phase out XRP. This reinforces the security and resilience of the XRPL and ensures that XRP remains a fundamental part of the ledger’s operation.

Ultimately, the analysis concludes that RLUSD is more likely to serve as a catalyst for increased activity on the XRPL rather than a threat to XRP. As RLUSD adoption grows, it is expected to drive more trades, tokenized assets, and overall transactions—all of which rely on XRP for fees and liquidity bridging [1]. This increased demand for XRP could have a positive impact on its long-term utility and scarcity, reinforcing its value within the XRPL ecosystem.

Sources:

[1] https://timestabloid.com/heres-why-xrp-holders-should-be-excited-about-rlusd-emergence/