Ripple's Shift from XRP to Stablecoins
BitGo CEO Mike Belshe has openly criticized Ripple's original XRP bridge model, labeling it as outdated in today's stablecoin-dominated cross-border payments landscape. Speaking at the Digital Banking 2025 summit, Belshe argued that stablecoins like Ripple's newly launched RLUSD offer a more efficient alternative to intermediary tokens such as XRP.
"Ripple just launched a stablecoin," Belshe noted, highlighting the company's strategic pivot. "Stablecoins eliminate unnecessary conversions—like swapping dollars for XRP, then XRP for pesos—making transactions faster and cheaper."
Key Points:
- RLUSD's Rapid Growth: Ripple's USD-backed stablecoin has surged to nearly $450M in supply since its December 2025 launch and is now integrated into Ripple’s payment solutions.
- XRP's Decline: XRP’s price dropped 1.8% to $2.18, underperforming amid broader market volatility.
- Future of Payments: Belshe envisions a bankless ecosystem where stablecoins enable direct, Fed-backed transactions—bypassing traditional intermediaries.
Why Stablecoins Are Outpacing XRP
1. Efficiency in Cross-Border Payments
Stablecoins like RLUSD simplify transactions by maintaining a 1:1 peg to fiat currencies, reducing conversion steps and fees.
👉 Learn how RLUSD is transforming cross-border payments
2. Regulatory and Market Acceptance
With approvals from regulators like the NYDFS, stablecoins gain institutional trust—a hurdle for volatile assets like XRP.
3. Scalability
Belshe emphasized that direct access to Federal Reserve systems will drive mass adoption, not layered token ecosystems.
XRP's Volatility and External Factors
Despite a brief rally following a cryptic tweet from Ripple co-founder Arthur Britto, XRP’s price remains unstable. Broader market trends—such as geopolitical developments affecting crypto—have also influenced its performance.
| Metric | Value (USD) | Change (24h) |
|---|---|---|
| XRP Price | $2.18 | -1.8% |
| RLUSD Supply | $450M | +85% |
FAQs: Addressing Common Queries
Q: Is XRP still relevant after RLUSD’s launch?
A: While XRP retains niche use cases, Ripple’s focus on RLUSD signals a strategic shift toward stablecoin-driven solutions.
Q: How does RLUSD compare to other stablecoins?
A: RLUSD leverages Ripple’s existing payment infrastructure, offering faster settlement times for institutional users.
Q: Could XRP rebound with an ETF approval?
A: Potential spot ETFs might boost liquidity, but stablecoins remain the preferred medium for real-time payments.
👉 Explore the future of digital payments with RLUSD
The Bottom Line
Ripple’s embrace of RLUSD underscores the crypto industry’s broader trend toward stable, fiat-backed assets. For XRP, the path forward hinges on innovation beyond its original bridge currency model—whether through DeFi integrations, treasury strategies, or regulatory breakthroughs.
Note: All data reflects market conditions as of June 2025.
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