- Ripple CEO Brad Garlinghouse says XRP and RLUSD serve complementary roles, dismissing concerns that the stablecoin could replace XRP.
- However, growing RLUSD adoption does not necessarily guarantee increased demand for XRP.
Ripple CEO Brad Garlinghouse has weighed in on growing concerns that RLUSD could eventually compete with XRP, making it clear that Ripple does not see the two assets as rivals.
On November 3, Garlinghouse responded to an X post by XRP Ledger community member Vet, who explained why XRP and RLUSD serve different purposes. “Well said, Vet. Complementary, not competitive,” he replied.
His comments come as some XRP holders question whether Ripple’s expanding stablecoin business could weaken demand for XRP, particularly in payments and other financial services.
XRP and RLUSD Serve Different Purposes on the XRP Ledger
Although both assets are associated with Ripple, XRP and RLUSD perform different functions on the XRP Ledger.
XRP is the network’s native cryptocurrency and plays an essential role in its operations. Every account must maintain an XRP reserve, while transaction fees are also paid in XRP. This makes XRP necessary for using the network.
RLUSD serves a different purpose. It is a dollar-pegged stablecoin issued by Ripple, with its value designed to remain close to $1. Unlike XRP, which fluctuates with market demand, RLUSD is intended to provide price stability for users and businesses.
The two assets also differ in how they are controlled. Ripple can freeze RLUSD under certain conditions, including when required to meet legal obligations. XRP, however, has no central authority capable of freezing individual tokens on the XRP Ledger.
Why XRP Remains Important for Payments and Liquidity
Another important difference is XRP’s role in the XRP Ledger’s decentralized exchange (DEX).
The network has an automatic bridging feature that can route trades through XRP when doing so offers a better exchange rate. This gives XRP an important role in connecting different currencies and providing liquidity for market makers and liquidity providers.
RLUSD is better suited to transactions where maintaining a predictable dollar value is important. These include corporate payments, payroll, invoicing and other financial activities where businesses may prefer to avoid cryptocurrency price fluctuations.
However, this difference has not completely eased concerns among XRP investors.
Some holders worry that businesses could increasingly use RLUSD for payments instead of relying on XRP as an intermediary asset. If companies can transfer dollar-denominated value directly through a stablecoin, demand for XRP in certain payment activities could face pressure.
There is an important distinction, however. Sending RLUSD on the XRP Ledger does not require XRP to act as the payment currency, but the network still requires XRP to pay transaction fees. Every transaction therefore creates some demand for XRP to cover network costs, although that demand alone does not guarantee a significant increase in its market price.
RLUSD is also not limited to the XRP Ledger. It operates on Ethereum and other supported blockchains, meaning increased stablecoin adoption does not automatically translate into greater activity on the XRP Ledger.
Garlinghouse Reaffirms Ripple’s Commitment to XRP
Garlinghouse’s latest remarks are not the first time he has addressed concerns about Ripple shifting its attention away from XRP.
During Ripple’s Swell 2026 conference in New York on October 28, the CEO directly addressed speculation that the company’s growing stablecoin business was taking priority over XRP.
“We will never give up on XRP,” Garlinghouse said.
His November 3 statement reinforces that position. The CEO maintains that both assets have separate but complementary roles within Ripple’s broader ecosystem.
Ultimately, growing RLUSD adoption could expand Ripple’s payment and financial services business without eliminating XRP’s role in the XRP Ledger. However, whether that expansion will translate into stronger demand for XRP remains an open question.
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