XRP news today: Ripple's RLUSD Stablecoin Complements XRP, Not Replaces It

All Things XRP, a prominent figure in the digital asset community, recently clarified that RLUSD, Ripple’s stablecoin, is not intended to replace XRP. Instead, it serves a distinct purpose that XRP cannot fulfill. This explanation aligns with Ripple’s broader strategy to provide both speed and stability across global finance through two different tools.

XRP has demonstrated its value in facilitating fast, low-cost international payments and on-demand liquidity, often outperforming Bitcoin. However, its volatility limits its use in scenarios requiring price certainty. RLUSD addresses this issue by being pegged 1:1 to the U.S. dollar and backed by real cash reserves. According to All Things XRP, “Enterprises hate volatility. They need certainty, compliance, and redeemability.” RLUSD is designed to meet these needs.

While XRP is optimized for rapid cross-border transfers and speculative trading, RLUSD enables more traditional financial operations. These include fiat on- and off-ramps, trading collateral, business-to-business payouts, and foreign exchange settlement. Each asset is tailored for different use cases, and using one in place of the other could introduce risk or inefficiency. As All Things XRP explained, they are tools for various jobs, and experts have said that RLUSD will not replace XRP.

Another key distinction is regulation. RLUSD is approved by the New York Department of Financial Services, giving it an advantage in institutional adoption. It supports strict Know Your Customer and Anti-Money Laundering mandates, which are often essential in large-scale finance. XRP’s legal clarity following the SEC’s decision to withdraw its appeal helps its case, but All Things XRP pointed out that this victory does not equate to a regulated infrastructure like RLUSD’s.

Some have assumed that XRP can fulfill every role within Ripple’s network. The crypto expert directly counters this: “You can’t use a volatile token to collateralize loans or remit salaries.” Even minor price swings could compromise critical financial transactions. RLUSD is designed to address those limitations by offering price stability alongside compliance.

RLUSD is also not limited to the XRP Ledger. It is deployed on Ethereum, giving it reach across multiple blockchain ecosystems. This multi-chain presence offers greater flexibility to developers, institutions, and exchanges. In contrast, XRP is native to a single chain, reducing its direct integration options outside its ecosystem.

This development is not about choosing one asset over the other. As All Things XRP summarized, Ripple aligns speed, liquidity, stability, and regulatory assurance through XRP and RLUSD. He noted that both assets aren’t rivals, but complement each other.