Ripple CEO Brad Garlinghouse has responded to speculation regarding Ripple’s commitment to XRP, clarifying that the introduction of RLUSD will not alter the company’s approach to its key cryptocurrency asset.
XRP’s Essential Role in Ripple’s Ecosystem
Garlinghouse addressed the relationship between XRP and RLUSD during a recent RippleX community discussion. He emphasized that, despite the growing interest in stablecoins, XRP remains an integral part of the XRP Ledger and the broader Ripple ecosystem.
In response to questions from the XRPL Commons community, Garlinghouse stated that the XRP Ledger operates efficiently as a blockchain, with XRP required for transaction fees, account reserves, and account creation within the network. He explained that Ripple holds a significant portion of XRP and is committed to its ongoing development.
Ripple’s CEO reaffirmed, “We remain completely committed to the XRP ecosystem for a whole bunch of reasons. XRP is needed to use the XRP Ledger.”
He attributed some of the confusion around Ripple’s position to tribalism within the cryptocurrency sector, which has contributed to misunderstandings about the company’s multi-asset strategy.
Social media influencers, including John Squire, highlighted Garlinghouse’s recent statements, pointing out that RLUSD does not replace XRP and emphasizing the central role XRP plays in the network’s functioning.
XRP as a Bridge Asset for Payments
Garlinghouse detailed how Ripple uses XRP in cross-border payments. He described the cryptocurrency as a bridge asset that enables currency conversions, especially in markets with limited liquidity. According to the CEO, XRP offers advantages such as fast settlement times and low transaction fees, allowing Ripple to facilitate global payments more efficiently.
He also clarified that, while stablecoins like RLUSD can offer dollar-pegged value within the network, XRP maintains a unique function as a bridge asset capable of connecting less liquid currency corridors.
Introduction of RLUSD and Its Purpose
Garlinghouse explained that Ripple had already used stablecoins such as Tether and USDC in prior operations. He recalled that Ripple minted around 20% of all USDC at one point, which motivated the company to establish a stronger presence in the stablecoin space.
RLUSD was developed to provide a native, dollar-backed digital asset on the XRP Ledger with the aim of supporting on-chain payments and future tokenized assets. Garlinghouse stated that stablecoins are becoming increasingly important as more assets move on chain and require stable-value digital currencies for transactional purposes.
He noted that the company intends for RLUSD to function alongside XRP, rather than as a replacement. While XRP sustains the operational foundation of the ledger and facilitates international payments, RLUSD is designed for stability in day-to-day transactions and tokenized finance.
Garlinghouse described, “Stablecoins are going to be required,” linking their necessity to the expanding ecosystem of tokenized assets on the ledger.
Mini dictionary: RLUSD, or Ripple USD, is a stablecoin developed by Ripple that is pegged to the US dollar and operates natively on the XRP Ledger to facilitate on-chain payments, settlements, and tokenized asset transactions.
Garlinghouse concluded that Ripple will continue to innovate with multiple digital assets, aiming to address a variety of use cases both within and outside of payments, as the blockchain ecosystem evolves.
