Ripple CTO David Schwartz has provided detailed insights into why XRP maintains its position as a preferred bridge currency for international payments, even with the introduction of RLUSD and other stablecoins. During a recent discussion addressing questions about XRP adoption and future utility, Schwartz emphasized that XRP’s value extends beyond simple liquidity, highlighting its neutrality as a key differentiator in today’s multi-currency landscape.
XRP’s Competitive Edge in Cross-Border Payments
The explanation came in response to financial YouTuber Andrei Jikh’s question about why XRP hasn’t achieved consistent billion-dollar on-chain trading volumes despite over a decade of operation and institutional backing. Schwartz pointed out that while the future might see a dominant stablecoin reducing the need for bridge assets, the current environment of multiple fiat-backed stablecoins creates unique opportunities for XRP.
Ripple didn’t just create a stablecoin. They launched RLUSD as a Trojan horse for dollar interoperability.
If you understand RLUSD, you see the bigger play. The U.S. is anchoring its monetary system on-chain through tokenized debt and #XRP is the bridge. pic.twitter.com/xvTAicShZr
— Versan | Black Swan Capitalist (@VersanAljarrah) May 23, 2025
According to the Ripple executive, XRP serves as a neutral intermediary across various tokenized assets, cross-border settlements, and lending markets. He stressed that XRP’s price volatility becomes less significant given the brief holding periods during transactions, which naturally limits exposure to price fluctuations. This characteristic has led some industry experts to predict growing dominance for both RLUSD and XRP over established players like Tether’s USDT, particularly following potential regulatory developments such as the GENIUS Act.
When questioned about incentives for holding XRP if it primarily serves as a bridge, Schwartz clarified that liquidity providers must maintain XRP holdings to facilitate trading operations. He noted that institutions facing uncertainty about future asset needs often prefer holding XRP due to its substantial liquidity and proven utility as an exchange medium.
Institutional Adoption Challenges and Solutions
Schwartz also addressed broader adoption hurdles facing the cryptocurrency. He acknowledged that institutions have historically preferred off-chain transactions due to regulatory uncertainty and trust concerns surrounding decentralized systems. The Ripple DEX hasn’t fully overcome these barriers, partly due to insufficient safeguards against potential misuse by malicious actors.
However, the CTO indicated that future permission-based features could address these concerns, potentially strengthening on-chain usage. He explained why major firms like BlackRock might choose to utilize the XRP Ledger rather than developing proprietary blockchain solutions, drawing comparisons to how USDC operates across multiple networks.
Schwartz believes that global asset tokenization requires a scalable, chain-agnostic platform—qualities that XRPL provides. He also clarified that the XRP Ledger maintains an open participation policy regardless of nationality, addressing potential geopolitical concerns.
Market Sentiment Analysis
The CTO’s comprehensive explanation reinforces the complementary relationship between XRP and RLUSD while highlighting XRP’s continued relevance in cross-border payments. These clarifications may help stabilize investor confidence amid ongoing discussions about stablecoin competition in the digital asset space.
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