Key takeaways
- Ripple CEO says RLUSD competes with other stablecoins
- RLUSD circulation reaches $2.63 billion amid institutional expansion
- XRP remains essential for XRPL fees and liquidity
Ripple CEO Brad Garlinghouse has rejected claims that the company's growing RLUSD stablecoin business is replacing XRP, arguing that the two assets serve different purposes even as institutional adoption accelerates.
In a November 3 response on X, Garlinghouse said RLUSD competes with other stablecoins rather than XRP, emphasizing that customer use cases determine which asset is appropriate. He also endorsed a separate community explanation describing the assets as complementary.
His comments follow renewed questions about whether Ripple's institutional expansion will translate into direct demand for XRP, particularly as banks increasingly adopt dollar-denominated settlement.
Ripple CEO Says XRP and RLUSD Serve Different Markets
Garlinghouse's remarks follow his October appearance at Ripple Swell, where he rejected speculation that the company had shifted its priorities away from XRP.
The distinction lies in how the assets operate.
RLUSD is designed to maintain a $1 value, allowing institutions to settle payments and manage treasury balances without exposure to cryptocurrency price volatility.
XRP, by contrast, is the XRP Ledger's native asset, used for transaction fees, account reserves and certain cross-currency liquidity routes.
Every standard XRPL transaction consumes a small amount of XRP, while new accounts generally require a minimum reserve of 1 XRP.
However, sending $1 million in RLUSD does not require purchasing $1 million in XRP.
The distinction mirrors earlier comments from Ripple's CTO, who explained why businesses may favor stablecoins for some transactions and XRP for others.
RLUSD Reaches $2.63 Billion as Institutional Adoption Expands
Ripple's official reserve disclosures show $2.627 billion in circulating RLUSD backed by approximately $2.759 billion in reserve assets as of October 29.
Growth has accelerated as major financial institutions expand support.
BNY recently introduced custody services for both XRP and RLUSD, while Coinbase added the stablecoin to its retail and institutional trading infrastructure.
Meanwhile, Ripple expects its broader business to reach a $900 million annualized revenue run rate by year-end.
That growth does not necessarily translate into proportional XRP purchases.
RLUSD is issued on both Ethereum and XRPL, meaning some stablecoin activity takes place entirely outside the XRP Ledger.
Does Growing RLUSD Adoption Actually Benefit XRP?
The strongest economic connection comes through liquidity rather than transaction fees alone.
XRPL's decentralized exchange can route trades through XRP when doing so offers a better exchange rate, potentially generating demand for the asset as an intermediary.
Earlier on-chain analysis identified nearly $900 million in RLUSD/XRP trading volume over six months, suggesting the stablecoin can contribute to XRP liquidity.
However, trading volume does not reveal how much XRP investors permanently accumulate.
The network's low transaction fees also mean that higher RLUSD transfer activity may increase XRP usage without creating substantial buying pressure.
Recent XRPL stablecoin data recorded $14.09 billion in quarterly transfers, demonstrating growing network activity without establishing equivalent XRP demand.
