Ripple’s Chief Technology Officer, David Schwartz, clarified that XRP remains crucial to Ripple’s operations. During a recent conversation, an XRP supporter questioned Ripple’s reduced public emphasis on XRP compared to its new stablecoin, RLUSD.
Schwartz responded that XRP plays a far larger role than any other asset within Ripple Payments. He highlighted XRP’s importance as a bridge between currencies for cross-border transactions. Although Schwartz did not have exact figures, he confirmed that Ripple relies on XRP significantly more than other digital assets, proving its central role in payment services.
RLUSD Designed for Stability, Not Replacement
Addressing concerns about RLUSD’s growing presence, Schwartz explained that stablecoins like RLUSD serve specific purposes. Businesses prefer price stability when using digital assets as collateral or when moving in and out of crypto markets. Price swings can cause issues in these scenarios, making RLUSD the better option.
However, Schwartz maintained that for most other use cases, assets like XRP are more effective. Unless someone wants to avoid risk completely, they typically choose established digital currencies over cash.
XRPL Adoption Will Drive XRP Value
Schwartz emphasized that increased real-world adoption of the XRP Ledger (XRPL) will naturally boost XRP’s utility and value. As more institutions and projects leverage XRPL for financial applications, demand for XRP will grow.
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He pointed out that XRP is deeply embedded in XRPL’s structure. Unlike other networks where avoiding the native token is easier, XRP is integral to XRPL’s functionality. This design ensures that broader XRPL usage directly supports XRP’s value.
Community Concerns Over RLUSD’s Role
Since Ripple launched RLUSD in December 2024, some community members have expressed worries that Ripple is sidelining XRP. These concerns intensified in May 2025 when Ripple’s partner Hidden Road, serving over 300 institutions, adopted RLUSD as its primary collateral asset.
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Longtime XRP supporters like Elena Schoen argued that Ripple now limits XRP to transaction fees while giving RLUSD a leading role in payments. Despite criticism, several community figures defended Ripple’s strategy. Analyst WrathofKahneman said Ripple had not abandoned XRP but shifted focus toward institutional services. Consultant Jake Claver noted that expanding financial activity on XRPL would increase XRP demand.
Both Schwartz and Ripple CEO Brad Garlinghouse clarified that RLUSD and XRP have separate functions. RLUSD supports stable on-chain fiat operations, while XRP remains essential for fast and efficient cross-border transfers.
