XRP treasury company Evernorth has responded directly to one of the most common questions circulating within the digital asset sector: if RLUSD can facilitate blockchain-based payments and settlements, why is XRP still necessary?
The company shared a new article written by its Chief Business Officer, Sagar Shah, explaining why RLUSD and XRP serve fundamentally different purposes on the XRP Ledger. The post stated that the two assets are “not substitutes” and argued that both are expected to grow as on-chain finance expands.
The article, titled “The Swap Kid: Why RLUSD Can’t Replace XRP,” focused largely on the mechanics of liquidity, asset routing, and decentralized trading infrastructure. Shah used a simplified playground analogy to explain how XRP functions behind the scenes during transactions involving different tokenized assets.
"If RLUSD does what XRP was supposed to do, why still need XRP?"
We get some version of this question constantly. Two different functions. Both grow as on-chain finance grows.
New from @sagarCBO on why these assets aren't substitutes: https://t.co/Z0jfj4XAQG
This content is… pic.twitter.com/wPnkxTzWLe
— evernorthxrp (@evernorthxrp) May 20, 2026
XRP Presented as the Core Bridge Asset
According to Shah, the central issue in digital markets is the difficulty of direct asset swaps. He explained that as the number of tokenized assets increases, finding two parties that each want the exact asset held by the other becomes increasingly inefficient.
To illustrate the point, he described a hypothetical “swap kid” on a playground who holds every type of snack and facilitates exchanges between children without requiring direct matching between traders. Shah argued that XRP performs this same role on the XRP Ledger.
He explained that when users exchange assets such as tokenized Treasury bills and euro stablecoins, XRP is often the invisible intermediary enabling the transaction. While traders may only see the assets entering and leaving the transaction, XRP operates in the middle of the process to complete the swap efficiently.
The article emphasized that RLUSD does not serve this purpose. Shah described RLUSD as a dollar-backed stablecoin designed to maintain a fixed value and function as a blockchain-based representation of the U.S. dollar.
He acknowledged that RLUSD is useful in transactions where one side of the trade involves dollars, but argued that many on-chain financial activities require a neutral bridge asset instead.
Evernorth Explains Why RLUSD Cannot Fill XRP’s Role
Shah outlined three primary reasons why RLUSD cannot replace XRP as the routing asset on the XRP Ledger.
First, he argued that stablecoins depend on issuing companies and banking relationships. Because stablecoins are backed and managed by centralized entities, they can potentially face regulatory actions, freezes, or operational disruptions.
Shah stated that relying on a company-issued asset as the foundation for all ledger activity would introduce a central point of failure into the system.
Second, the article stressed that stablecoins operate under regulatory frameworks that may include sanctions enforcement, geographic restrictions, and token freezes.
Shah argued that a global routing asset must remain neutral and accessible across jurisdictions. He stated that XRP’s current protocol structure allows it to settle transactions without an intermediary blocking or reversing transfers.
Third, Shah focused on liquidity pools and decentralized exchange infrastructure. He explained that automated market makers require two separate assets in a pool and noted that RLUSD would still need another pairing asset. According to the article, XRP naturally fills that role because of its liquidity and long operational history on the ledger.
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XRP’s Utility Extends Beyond Trading
The article also argued that XRP’s utility extends into lending and escrow services within on-chain finance.
Shah explained that XRP can function as collateral in lending markets because it remains liquid, widely accepted, and free from issuer intervention. He contrasted this with stablecoins, which may be subject to freezes or restrictions imposed by their issuers.
He also pointed to XRP Ledger escrow functions, which allow XRP to be locked under predetermined conditions without requiring third-party custody. According to Shah, this feature is important for treasury operations, scheduled payments, and conditional settlements.
Through the article, Evernorth positioned RLUSD and XRP as complementary assets rather than competitors, arguing that stablecoins address dollar-based settlement needs, as XRP continues to serve as the neutral bridge asset supporting broader activity across the XRP Ledger ecosystem.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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