Ripple’s Chief Technology Officer, David Schwartz, has stated that the growing wave of stablecoin issuance does not threaten Ripple or XRP’s position in the digital asset landscape.
Rather, he emphasized that stablecoins are additive to the ecosystem and can enhance XRP’s utility by reinforcing the need for cross-asset liquidity. His remarks came in a recent interview published by CB Insights and highlighted by technical analyst AllinCrypto in a tweet that underscored Schwartz’s position.
Stablecoins Add Liquidity, Not Competition
When asked if Ripple might be pushed aside by the proliferation of stablecoins—including recent launches by major financial institutions—Schwartz responded directly that stablecoins are “actually helpful.” He explained that while stablecoins offer a relatively stable form of value compared to highly volatile cryptocurrencies, they still do not eliminate the fundamental requirement for liquidity across different assets and regions.
According to Schwartz, stablecoins make it easier for users to hold digital assets, especially when volatility presents challenges. However, he made clear that “you still need liquidity,” particularly between different stablecoins.
He noted that even dollar-backed stablecoins, such as those issued by JPMorgan and Circle, do not universally solve the problem. If one is not in the United States, for example, a dollar-pegged coin is not necessarily stable due to currency exchange and geopolitical considerations.
Ripple CTO David Schwartz says stablecoin issuers do not threaten Ripple and infact benefit the ecosystem:"You still need liquidity.""The dollar aggregates demand for smaller currencies and we see $XRP playing that role." pic.twitter.com/3V8ZGMd1kR
— ALLINCRYPTO (@RealAllinCrypto) June 16, 2025
Jurisdictional Limitations Reinforce Need for a Neutral Asset
A major issue identified by Schwartz is the jurisdictional nature of stablecoin issuance. Each stablecoin has a counterparty that is bound by a specific legal framework. “There isn’t a universal counterparty that everybody in the world can have equal access to,” Schwartz stated.
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This leads to fragmentation in the stablecoin market, as each coin is tied to a particular region or regulatory system. As such, the absence of a universally accessible settlement mechanism means that cross-border and cross-asset transfers still require a neutral intermediary.
This is where Schwartz identified XRP’s unique advantage. He compared the role of XRP to the dollar’s function in aggregating demand from smaller currencies. Just as the U.S. dollar serves as a global reserve and intermediary currency, XRP could serve a similar purpose in a digital ecosystem composed of numerous stablecoins with limited interoperability.
XRP as a Jurisdictionless Settlement Asset
Schwartz elaborated on how XRP can facilitate settlement between regional hubs. He said, “You need something that’s neutral. You need something that’s kind of jurisdiction-less if you want a sort of open participation ecosystem.”
Unlike stablecoins, which are issued and controlled by centralized entities subject to specific legal regimes, XRP operates in a decentralized manner. This makes it suitable for scenarios that require neutrality, speed, and borderless access.
In Schwartz’s view, XRP’s openness is what makes it an effective settlement mechanism. He described the current trajectory of the digital asset market as one that will likely involve “dozens of stablecoins” and “hundreds and hundreds of markets.” In such an environment, XRP could help centralize liquidity and reduce the inefficiencies caused by stablecoin fragmentation.
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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