A recent video shared by the cryptocurrency commentator VALE has brought renewed attention to the relationship between institutional demand at Ripple and the price of XRP. The discussion centers on whether the growth of Ripple’s broader business is reflected in actual demand for XRP, the digital asset designed for use on the XRP Ledger.
Reporter presses Ripple on XRP’s importance
In the widely viewed video, a reporter directly questioned Ripple CEO Brad Garlinghouse about XRP’s significance to the company as Ripple expands new products such as RLUSD. The reporter observed that growing institutional demand appears to be concentrated around RLUSD instead of XRP, raising concerns over whether XRP still plays a central role in Ripple’s current strategy.
Garlinghouse was asked to clarify the company’s priorities, specifically why recent expansion efforts highlight RLUSD rather than XRP. The reporter suggested that institutional demand may not be directly supporting XRP’s price or relevance in Ripple’s future plans.
VALE, a well-known voice in the crypto community, emphasized this line of inquiry as critical, highlighting his previous concerns that significant Ripple partnerships have not led to substantial price movement in XRP.
He argued that one key reason may be the limited use of XRP as a liquidity bridge by major banks, despite Ripple’s high-profile collaborations.
Ripple’s payment volumes spark debate
In response to questions about institutional demand, Garlinghouse shared that Ripple processed $13 trillion in payment transactions during 2025, but disclosed that 99.9% of these transactions did not utilize either a crypto rail or a stablecoin.
Garlinghouse stated that despite $13 trillion in payment volume, the overwhelming majority of Ripple’s transactions did not involve cryptocurrency rails or stablecoins.
VALE pointed to this data as evidence that demand for Ripple’s services is not translating into direct demand for XRP. He argued that if crypto rails—including XRP—are barely used in Ripple’s massive payment flows, the price of XRP will remain largely independent from the company’s expanding business lines.
He also highlighted Ripple’s treasury activities, contending that XRP flows were not integrated into the firm’s treasury management, which he described as another factor separating institutional demand for Ripple’s infrastructure from demand for XRP itself.
Mini dictionary: RLUSD is Ripple’s US dollar-backed stablecoin introduced to serve as a digital representation of US dollars within Ripple’s payment ecosystem. It aims to support cross-border transactions and accommodate customers seeking the stability of a fiat-pegged asset while using blockchain infrastructure.
| Year | Total Ripple Payment Volume | Transactions Using Crypto or Stablecoin |
|---|---|---|
| 2025 | $13 trillion | 0.1% |
Community weighs the impact of RLUSD and XRP
The debate surrounding XRP’s role prompted numerous responses across the crypto community. One commenter, BK, argued that many banks now use RLUSD and the XRP Ledger without directly acquiring XRP, which, according to BK, is reflected in the asset’s price dynamics.
Another community member, Personne, disagreed, asserting that RLUSD transactions on the XRP Ledger still require XRP for transaction fees, and that activity on the network results in XRP being burned as part of its mechanism.
Community members debated whether RLUSD activity ultimately benefits XRP or bypasses its direct involvement, highlighting ongoing uncertainty about how institutional adoption will influence XRP’s utility and value.
VALE maintained his initial point, asking whether expansion in Ripple’s payment operations and RLUSD would meaningfully translate into sustained demand for XRP, or if XRP’s role will remain more limited compared to the company’s other strategic initiatives.
