Mason Versluis, a well-known cryptocurrency analyst, shared renewed optimism for $XRP after viewing a video of Ripple CEO Brad Garlinghouse addressing the relationship between Ripple’s upcoming RLUSD stablecoin and the XRP token.
Ripple clarifies position on XRP and RLUSD stablecoin
In his remarks, Garlinghouse explained that Ripple remains fully committed to the long-term success of XRP, even as it expands into stablecoins. He responded to concerns that Ripple’s focus on launching RLUSD could undermine XRP’s role or reduce its importance within the company’s ecosystem.
During the video, Garlinghouse made it clear that Ripple sees XRP as its guiding focus. He stated, “We won’t do things, we only want to do things that are good for XRP.”
The CEO added that RLUSD is being built to serve complementary functions, not to replace or diminish the significance of XRP. This is aimed at assuaging worries among token holders regarding the impact of RLUSD adoption on XRP’s value proposition.
Garlinghouse emphasized that Ripple’s RLUSD project is aligned with the company’s commitment to XRP and intends to ensure both assets work in tandem within the Ripple ecosystem.
Versluis, who shared his reaction on X, commented, “this video made me 5.89X more bullish on $XRP specifically,” highlighting a surge in bullish sentiment following Garlinghouse’s updates.
RLUSD increases liquidity on the XRP Ledger
Garlinghouse provided an update on RLUSD’s distribution, reporting that about half of the stablecoin’s supply has already been issued on the XRP Ledger (XRPL), Ripple’s decentralized public blockchain.
“Now about half of all RLUSD is just issued on the XRP Ledger, bringing more liquidity on ledger,” Garlinghouse stated, underlining the positive impact on network activity.
RLUSD facilitates dollar-denominated transactions and contributes fresh liquidity to XRPL. In contrast, XRP continues to be used primarily for transaction fees and cross-border value transfers within the network.
Whether the growth of RLUSD will directly boost XRP prices remains uncertain and depends on broader user adoption and the resulting demand for XRP in network operations.
Mini dictionary: XRP Ledger (XRPL) is Ripple’s public, decentralized blockchain network designed for fast, low-cost asset transfers and settlements, and serves as the foundational infrastructure for both XRP and tokenized stablecoins like RLUSD.
Institutions back RLUSD expansion
Major financial institutions and leading digital asset platforms have begun to support RLUSD. BNY Mellon, one of the world’s largest asset custody banks, now lists RLUSD and XRP on its custody services, offering institutional clients new digital asset management solutions.
Coinbase, a prominent cryptocurrency exchange and service provider, has also introduced RLUSD across several blockchain environments. This move expands access for retail and institutional users, further integrating the stablecoin within the crypto financial system.
These partnerships could drive additional RLUSD adoption, enhance its liquidity, and strengthen infrastructure surrounding XRPL and XRP.
| Institution | Asset Supported | Service Provided |
|---|---|---|
| BNY Mellon | RLUSD, XRP | Custody |
| Coinbase | RLUSD | Exchange, Trading |
XRP community divided over RLUSD impact
While Versluis has expressed increased enthusiasm, some XRP holders remain skeptical about whether RLUSD adoption will translate into gains for XRP itself.
Community member Hugh Damnright openly questioned the actual value XRP derives from transaction fees, suggesting that RLUSD has diminished some of the use cases originally envisioned for XRP. Another observer, Wex Gunworks, voiced frustration with XRP’s price performance, noting the lack of sustained upward movement in recent years.
These differing views highlight an ongoing debate within the XRP community about the interplay between Ripple’s business expansion and XRP’s market outlook. The effect of RLUSD’s growth on XRP will depend on factors such as network demand, on-chain activity, and the ability to generate tangible utility for the token through expanded stablecoin operations.
