A recent tweet by crypto commentator and XRP enthusiast “All Things XRP” addressed a growing narrative circulating on social media: that Ripple’s launch of RLUSD will limit the utility or value of XRP.
According to the commentator, this claim is categorically incorrect and fails to grasp the intended synergy between RLUSD and XRP within Ripple’s ecosystem. In the detailed thread, All Things XRP explained how these two assets are complementary and mutually reinforcing in the context of Ripple’s broader cross-border payment strategy.
“RLUSD IS GOING TO LIMIT XRP!”
This take is everywhere right now—and it’s flat-out wrong.
Let’s set the record straight with the facts.
pic.twitter.com/BIzew7lxIT
— All Things XRP (@XRP_investing) April 11, 2025
The Function of RLUSD and Its Relationship With XRP
The tweet emphasizes that RLUSD and XRP are not competitors in any capacity. RLUSD was created to enhance what XRP delivers—specifically, liquidity and transaction speed.
RLUSD is designed to provide price stability, a feature that appeals to institutions hesitant to engage directly with more volatile digital assets. XRP, meanwhile, continues to function as a bridge asset, enabling the rapid movement of value across borders.
Together, these two assets support Ripple Payments’ goals for a faster, cheaper, and more scalable solution. RLUSD handles the stability needed for settlement, while XRP remains indispensable for assets bridging. According to the commentator, this dual-role framework is not a diversion from XRP but an extension of its utility.
Built on the XRP Ledger, Supporting XRP Directly
All Things XRP also highlights the foundational role that XRP plays in the operation of RLUSD. Every transaction involving RLUSD is executed on the XRP Ledger. This means that transaction fees are paid in XRP and that every RLUSD transfer contributes to XRP’s deflationary model by burning small amounts of XRP.
This dynamic leads to what the commentator describes as built-in value creation for XRP holders. Increased RLUSD adoption results in greater transaction volume on the XRP Ledger, which, in turn, leads to more XRP being burned and a more active network. Rather than replacing XRP, RLUSD indirectly drives demand for it by expanding the use of the ledger it runs on.
Institutional Access Without Volatility
One of the reasons cited for the introduction of RLUSD is to lower the barrier of entry for institutions. Some financial entities have expressed reluctance to use volatile assets for settlements, even when those assets offer significant technological advantages.
RLUSD serves as a stable entry point, giving institutions a way to participate in Ripple’s payment ecosystem. Importantly, that ecosystem still relies on XRP at its core.
David Schwartz, Ripple’s CTO, has publicly stated that the company is leveraging multiple types of assets—including fiat, stablecoins, and XRP—to meet the varied needs of global payments. XRP’s role remains central to that mission. RLUSD, far from displacing XRP, makes its benefits more accessible to users who may have otherwise stayed away.
Data Underscores RLUSD’s Contribution to XRP Ecosystem
According to the statistics cited in the tweet, RLUSD has already made a notable impact. Its market cap is approximately $300 million, it has facilitated over 35 million transactions, and it has moved more than $70 billion in volume. All of this activity flows through an infrastructure powered by XRP.
The commentator points out that these figures reinforce the value of XRP rather than diminish it. Every RLUSD transaction is also an XRP transaction in effect, as it activates the underlying mechanisms of the XRP Ledger.
As the tweet concludes, “Ripple is building a dual-asset powerhouse, and XRP is right at the center of it.” Those evaluating the evolving Ripple infrastructure are urged to focus on the technological and economic fundamentals rather than engage with claims that ignore the integrated nature of Ripple’s payment strategy.
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