Is XRP Doomed as Ripple Integrates Its RLUSD Stablecoin for Payments

Speculation suggests that Ripple’s integration of RLUSD stablecoin into its cross-border payments solution, Ripple Payments, might position XRP for doom.  

Yesterday, Ripple officially announced the integration of RLUSD into Ripple Payments, its flagship cross-border payments solution. According to Ripple, the move is part of efforts to drive the enterprise utility and demand for the asset. 

Therefore, the company integrated RLUSD into Ripple Payments to enable its clients to utilize the stablecoin for fast and cheap cross-border settlements. 

XRP Holders React 

The integration has triggered concerns among XRP enthusiasts, who fear it could negatively impact XRP’s adoption. Previously, Ripple Payments utilized XRP as a bridge currency between two fiats to enable quicker and cheaper transactions across borders. 

With RLUSD now integrated into Ripple Payments, many have suggested that the integration might reduce XRP’s adoption for cross-border settlements. 

How XRP Could Benefit From RLUSD Integration on Ripple Payment 

However, popular community figure ‘All Things XRP’ argues that XRP stands to benefit from this integration. According to the channel, RLUSD and XRP complement each other just like jelly and peanut butter. It claimed that Ripple uses a dual-asset strategy in which RLUSD brings stability while XRP offers speed and liquidity. 

Supply Reduction 

Notably, the community figure argued that the integration would also drive utility on XRP’s underlying blockchain, XRPL. Since RLUSD currently exists on XRPL and Ethereum, ‘All Things XRP’ asserted that every transaction on the XRPL will utilize XRP as transaction fees, which are automatically burned. Proponents believe this move will reduce XRP’s supply over time. 

Increased Adoption 

In addition, All Things XRP noted that the integration could drive institutional adoption of XRP, with RLUSD serving as a low-risk entry point for institutions new to crypto. 

Therefore, once they start using the stablecoin within the Ripple ecosystem, these institutions are more likely to expand their involvement by integrating XRP for liquidity. 

Further, it suggested that the integration would also boost XRP liquidity on XRPL, potentially leading to the launch of the RLUSD/XRP trading pair and increased activity on XRPL’s native DEX. 

Positive Sentiments 

The community figure also stated that positive reports on RLUSD’s success will translate to favorable sentiment for Ripple, which will ultimately benefit XRP. 

In conclusion, the user emphasized that Ripple is only building around XRP and not replacing the coin with RLUSD in its cross-border payment solution. 

Meanwhile, recall that RLUSD launched in December 2024 after intensive beta testing that commenced in August. At the moment, RLUSD has a market cap of $293.64 million, positioning it as the 220th biggest cryptocurrency and the 11th largest stablecoin. Read more xrp breaking news.