Ripple expands RLUSD to 40 blockchains as XRP debate grows

A new debate has ignited within the XRP Ledger (XRPL) community, putting the spotlight once again on the relationship between stablecoins, payment systems, and XRP itself. As the network rapidly grows its footprint in decentralized finance, tokenization, and cross-border payments, developers and researchers are actively reassessing XRP’s evolving role within these expanding use cases.

Stablecoins take center stage in payment flows

This conversation was sparked when XRPL researcher Eri highlighted that Ripple‘s On-Demand Liquidity (ODL) payment flows are increasingly powered by major stablecoins such as Tether (USDT) and USD Coin (USDC). Eri emphasized that while stablecoins have become more prominent within payment infrastructures, maintaining robust XRP liquidity on the ledger remains a vital foundational element.

According to Eri, XRP’s utility stretches far beyond just payments. The researcher argued that the digital asset can serve as collateral in financial applications, pointing to a broader potential for XRP to play a key part in decentralized finance products built on top of XRPL.

XRP and stablecoins viewed as complementary, not rivals

The debate gained further traction with insights from Vet, a contributor to the XRPL Foundation and an active XRPL dUNL validator. Vet strongly argued that XRP and stablecoins should not be seen as competitors, but rather as complementary tools designed to support one another within the ecosystem.

In Vet’s assessment, a payments model largely reliant on stablecoins more closely resembles standard payment flows than conventional cross-currency transfers. In such setups, conversion can take place on both the sending and receiving sides, often removing the need for additional swaps on the XRPL’s decentralized exchange.

Even so, Vet stressed that secure payment systems ultimately require strong assets and stablecoin-backed liquidity for efficient operations. As more issued assets enter the XRPL ecosystem, the need for a common bridge asset is expected to persist.

Mini glossary: dUNL refers to the “default Unique Node List,” a designation for validators considered trustworthy on XRPL. This component fundamentally determines which validators help the network reach consensus on transactions.

Debate on bridge assets and liquidity efficiency

Vet further cautioned that without a shared bridge asset, liquidity could become fragmented across countless trading pairs, making transactions less efficient overall. He argued that when different assets need to be bridged, XRP remains well positioned to fulfill this essential role.

He also noted that, in decentralized networks, bridge assets should be as neutral as possible and not dependent on a single issuer. This neutrality is at the heart of the ongoing debate over which asset should serve as the primary settlement instrument on XRPL.

Ripple’s stablecoin push and XRPL’s expanding use cases

These discussions among the XRPL community come as Ripple continues to scale up its own stablecoin strategy. The company’s RLUSD stablecoin has recently been deployed across 40 different blockchain networks. This expansion has increased access to payment systems, institutional liquidity, and tokenized assets.

At the same time, XRPL’s scope has moved far beyond payments. Features such as tokenization, lending, and decentralized finance applications have become central to the ledger, and recent proposals to add StableSwap and concentrated liquidity features to its automated market maker infrastructure are expected to further boost price efficiency for both stablecoins and real-world asset tokens.

Within the community, consensus has yet to emerge on whether the rise of stablecoins could curb demand for XRP. However, the latest discussions underscore that many XRPL developers increasingly see XRP and stablecoins taking on distinct and complementary roles in the growing financial ecosystem of the ledger.

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