- Ripple CTO David Schwartz explains that RLUSD boosts the XRP Ledger by enhancing liquidity and expanding use cases without replacing XRP.
- Transactions using RLUSD burn XRP, potentially increasing its value through reduced supply.
Ripple’s newly introduced stablecoin, RLUSD, is making waves—and not just because it’s fiat-backed. According to Ripple CTO David Schwartz, this stablecoin could play a transformative role in boosting activity on the XRP Ledger (XRPL), and indirectly, the value and utility of XRP itself.
In a post on X, prominent crypto enthusiast Angelica Saldana broke down the relationship between RLUSD and XRP, sparking fresh conversations across the digital asset community. Her analysis highlights three core benefits: XRP burn mechanics, increased liquidity, and improved utility for cross-border payments.
Burning XRP Through RLUSD Transactions
One of the most compelling takeaways from Saldana’s post is that RLUSD transactions on XRPL still require XRP for gas fees—fees that are burned rather than recycled. This introduces a deflationary mechanism that gradually reduces XRP’s total supply. More RLUSD usage could mean more XRP burned, tightening supply and potentially driving up value over time.
Also read: Is $2 the New $0.50 for XRP? Inside the Price Level XRP Can’t Seem to Break
Boosting Liquidity and Global Payments
Saldana also emphasized that RLUSD enhances liquidity, especially in decentralized finance (DeFi) and international payment corridors. As a stablecoin, RLUSD offers price predictability that businesses need, while XRP often serves as the intermediary in conversions. This symbiotic relationship strengthens XRP’s role as a bridge currency while giving developers more tools to build on XRPL.
Schwartz: RLUSD Expands Use Cases
In a video shared alongside Saldana’s post, Schwartz delves deeper into RLUSD’s strategic purpose. He explained how RLUSD complements XRP by broadening the XRPL’s use cases—especially on its built-in decentralized exchange. Auto-bridging, a core feature of the DEX, uses XRP to facilitate trades between assets, and RLUSD adds volume and stability to that system.
RLUSD, he said, is positioned to support the next wave of blockchain innovation—from tokenized real-world assets to trade finance and forex applications.
Looking Ahead
As both Schwartz and Saldana pointed out, RLUSD doesn’t replace XRP—it amplifies its ecosystem. By supporting new financial tools and encouraging on-chain activity, RLUSD could quietly become a catalyst for XRP adoption, utility, and long-term relevance.
