RLUSD rises could affect its market value by limiting the role of XRP to trading fees.
As RLUSD rises, Schoen predicts that changes will further affect future functions of XRP.
CEO Brad Garlinghouse claims that XRP and RLUSD will coexist even after Stablecoin's popularity has increased.
Ripple's new Stablecoin RLUSD is quickly gaining position, stirring serious questions about the future role of XRP in ecosystems. Ripple claims that both assets serve different purposes, but some analysts aren't convinced. Is RLUSD just a useful addition, or is it quietly edging the XRP from the spotlight?
Unpack what's going on.
RLUSD goes to center stage, but what about XRP?
Since their debut in December 2024, RLUSD has been on a hot streak. Recently, they secured a list on Gemini, one of the top US-based exchanges, raising their market capitalization to $317 million, bringing daily trading volumes to $52 million.
Such momentum is difficult to ignore, and the XRP community is booming.
According to the crypto influencer All things xrpthe two assets are intended to complement each other. While RLUSD brings price stability to the table, XRP shines in speed and efficiency, but remains an unstable asset.
The idea is that both can coexist, and each plays a distinct role in Ripple's broader payments ecosystem.
XRP's reduced role raises eyebrows
Despite the peace of mind from Ripple, some people in the community feel that XRP is slowly being downgraded. Elena Shane, a self-proclaimed “chain detective,” recently raised a red flag about what she considers as a subtle but strategic change.
In X's post, Schoen claims that XRP is currently primarily used to cover transaction fees on XRP ledgers, and RLUSD is stepping up to handle the hard lifting: liquidity provision, cross-border trading, institutional and retail settlements, and multi-fiat onboarding.
Ripple appears to be gradually reducing the role of XRP to transaction fees basically. Is this enough? Read the Ripples site so you can back up your thoughts. Transaction fees are required as this is the only absolute reason why XRP is required. RLUSD can be used for everything else. …
– Elena (@Elenaschoen_) May 7, 2025
RLUSD added to Ripple payment: How good is this move?
Ripple's decision to integrate RLUSD into RIPPLE payments by the end of 2025 will simply add fuel to the fire. CEO Brad Garlinghouse calls RLUSD the new “gold standard” for in-facility trading, citing the US dollar peg as a way to eliminate volatility from cross-border payments.
That's a big deal. The XRP has been Ripple's Go-To Bridge Asset for a long time, but its price fluctuations have always been a concern for large players. Currently, we fear that the usefulness and fluidity of XRP will slowly fade away as RLUSD offers a more predictable alternative.
Ripple executives respond: It's not either
Several Ripple executives have previously ringed to address growing concerns.
President Monica emphasized that clients are not forced to choose their side. XRP and RLUSD are part of an intentional dual token strategy. Whether your business is speed or stability, Ripple aims to provide the right tools for your job.
CTO David Schwartz also used X to make it clear that RLUSD will not replace XRP. In his view, XRP offers its own technical advantages: automatic bridges, pass funding, and critically, its decentralized nature – XRP cannot be frozen and is not subject to jurisdictional control.
Meanwhile, Brad Garlinghouse remains firmly in his sights. In an interview with Citizens Bank in January 2025, he explained that RLUSD is simply a fiat-on-chain. On the other hand, XRP is essential as a currency for neutral, high-speed, boundary-free bridges in XRPL.
So, where does this leave us? For now, both tokens are balanced by weight. It remains to be seen whether that balance will remain until 2025.
