- Ripple’s new stablecoin, RLUSD, is not a threat to XRP but a complementary asset that will boost its utility.
- Higher adoption of RLUSD will increase transactions on the XRPL, driving more demand for XRP for fees and liquidity bridging.
The recent emergence of RLUSD, a USD-pegged stablecoin from Ripple, has sparked a lively discussion within the XRP community. While some holders worry that this new digital asset could threaten XRP’s position, many experts believe RLUSD is a strategic addition that will significantly enhance XRP’s utility on the XRP Ledger (XRPL). Rather than a competitor, RLUSD is set to become a catalyst for growth, driving more demand and value for XRP.
XRP’s Core Role on the XRPL
XRP holds an exclusive and irreplaceable role as the native asset of the XRP Ledger. Unlike any other token, including the new stablecoin, It is essential for paying transaction fees. This is a fundamental rule of the network. Every single transaction on the XRPL consumes a small amount of XRP, ensuring a constant, built-in demand. Furthermore, XRP is the only asset that operates without counterparty risk, freezes, or the need for trust lines, making it uniquely trusted and integrated into the ledger’s protocol.
🚨⚠️EVERYONE’S ASKING: WILL RLUSD KILL XRP?
The truth: RLUSD could supercharge XRP’s role on the XRPL.
Here’s why XRP holders should be excited. 🧵👇🏻 pic.twitter.com/XokAphRkrZ
— All Things XRP (@XRP_investing) August 10, 2025
RLUSD Adoption Drives XRP Demand
The key to understanding the relationship between the two assets is realizing that increased use of RLUSD directly benefits XRP’s. When users trade, send, or receive RLUSD, the underlying transactions still require XRP to be burned for fees. Therefore, a rise in RLUSD adoption will lead to more network activity and, consequently, more XRP being consumed. This powerful dynamic ensures that RLUSD’s success is directly tied to the ongoing utility and scarcity of XRP.
Autobridging and Increased Liquidity
The XRPL’s decentralized exchange (DEX) further solidifies this symbiotic relationship through a process called “autobridging.” This feature automatically routes trades through XRP to find the most efficient path. As more RLUSD trading pairs are created on the DEX, more transactions will leverage this autobridging function. This means that a wider use of RLUSD will directly lead to a higher utilization of XRP in liquidity operations. The two assets are designed to work together, with RLUSD handling stable settlements and XRP remaining central to transaction processing and cross-border value movement.
Ultimately, RLUSD is an additional driver of network activity for the XRPL Its success will introduce new users and new transactions, all of which will rely on XRP. This symbiotic relationship positions RLUSD not as a threat, but as a bullish development for XRP’s long-term utility and value.
ALSO READ:Do Kwon Pleads Guilty in $60 Billion Terra/LUNA Collapse Facing Prison and Fines
DISCLAIMER:
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of the publisher. The publisher does not endorse or guarantee the accuracy of any information presented in this article. Readers are encouraged to conduct further research and consult additional sources before making any decisions based on the content provided.
About the Author
