XRP News Today: Ripple's RLUSD Gains Traction, XRP's Role Questioned

Ripple’s new stablecoin, RLUSD, has been rapidly gaining traction since its launch in December 2024, raising questions about the future role of XRP within the Ripple ecosystem. While Ripple maintains that both assets serve distinct purposes, some analysts are skeptical about whether RLUSD is merely complementing XRP or gradually replacing it.

RLUSD has recently been listed on Gemini, one of the top U.S.-based exchanges, pushing its market cap to $317 million. This momentum has sparked discussions within the XRP community about the potential impact on XRP’s role. Crypto influencer All Things XRP suggests that RLUSD provides price stability, while XRP offers speed and efficiency, albeit with volatility. The idea is that both assets can coexist, each serving a unique function within Ripple’s broader payments ecosystem.

However, some community members, such as Elena Schoen, a self-proclaimed “Chain Detective,” have raised concerns that XRP’s role is being downgraded. Schoen claims that XRP is now primarily used for covering transaction fees on the XRP Ledger, while RLUSD handles liquidity provision, cross-border transactions, institutional and retail settlements, and multi-fiat onboarding. This shift, according to Schoen, could limit XRP’s utility and liquidity over time.

Ripple’s decision to integrate RLUSD into Ripple Payments by the end of 2025 has further fueled these concerns. CEO Brad Garlinghouse described RLUSD as the new “gold standard” for institutional transactions, citing its U.S. dollar peg as a way to eliminate volatility from cross-border payments. This move has led some to worry that XRP’s utility could fade as RLUSD provides a more predictable alternative.

In response to these concerns, several Ripple executives have clarified the company’s stance. President Monica Long emphasized that clients are not being forced to choose between XRP and RLUSD, as both are part of a deliberate dual-token strategy. CTO David Schwartz also took to X to clarify that RLUSD is not replacing XRP, highlighting XRP’s unique technical advantages such as auto-bridging, pathfinding, and its decentralized nature. Meanwhile, Brad Garlinghouse continues to assert that RLUSD is simply fiat on-chain, while XRP remains essential as a neutral, fast, and borderless bridge currency on the XRPL’s decentralized exchange.

According to the analyst's forecast, as RLUSD rises, Schoen predicts the change will further impact XRP's future functioning. However, for now, both tokens are balanced in their weightage. Whether this balance will hold through 2025 remains to be seen. The future of XRP within the Ripple ecosystem will depend on how effectively Ripple can manage the coexistence of both assets and address the concerns of the community.