Ripple has recently marked significant developments, including the successful settlement of a tokenized U.S. Treasury with JPMorgan, a partnership to expand stablecoin deals throughout Latin America, and enhancements in remittance services impacting 170 million people. However, a growing point of concern for $XRP holders emerges from these advancements: cash settlements increasingly rely on $RLUSD, Ripple’s dollar-pegged stablecoin, rather than $XRP itself. This trend raises questions about whether $XRP is being gradually sidelined by its own parent company.
In June 2026, Ripple, in collaboration with JPMorgan, Mastercard, and Ondo Finance, executed a groundbreaking tokenized Treasury settlement via the $XRP Ledger, achieving finality in under five seconds—significantly faster than traditional settlement methods, which typically take one to three business days. This accomplishment showcased Ripple’s technological capabilities, presenting the kind of institutional validation long anticipated by the $XRP community. Still, the noteworthy detail remains that the cash leg of this transaction was settled using $RLUSD instead of $XRP.
The same phenomenon has been seen in other recent partnerships. Ripple’s expanded stablecoin operations across Latin America utilize a regulated peso-backed stablecoin issued on the $XRP Ledger. Additionally, a significant remittance deal that services a vast customer base relies on $RLUSD as the primary currency for settlements. Each win for Ripple seems to reaffirm the effectiveness of the $XRP Ledger and its infrastructure; however, the actual settlement value is increasingly flowing through stablecoins rather than $XRP.
This has led to concerns about whether the use of $RLUSD in these transactions effectively sidelines $XRP—an issue that crystallizes the disconnect between Ripple’s corporate achievements and the token’s price movements. Critics argue that if stablecoins increasingly fulfill the settling role originally assigned to $XRP, the token’s relevance and value could diminish.
On the other hand, there are arguments supporting the idea that $RLUSD and $XRP can coexist and provide complementary value. Enterprises prefer $RLUSD due to its price stability, which is essential for cross-border transactions. As businesses seek stability in value during international transactions, stablecoins like $RLUSD become a more attractive option compared to the fluctuating price of $XRP. This does not imply a conspiracy against $XRP; rather, it reflects rational choices made by enterprises seeking stability.
There’s an ongoing debate regarding $RLUSD potentially cannibalizing $XRP’s intended purpose as a bridge asset for cross-border value transfers. Stablecoins possess the advantage of price stability while still maintaining the speed and programmability required in modern financial transactions. The concern emerges that if this trend continues, the specific demand for $XRP may weaken.
Advocates for $XRP emphasize that its role as a bridge asset can be strengthened in a landscape filled with various stablecoins. The idea is that while $RLUSD handles transactions in U.S. dollars, $XRP can facilitate liquidity by enabling transfers between different fiat-backed stablecoins. This assertion suggests that the rise of stablecoins could actually bolster the case for $XRP as necessary for moving value in a fragmented market.
Additionally, Ripple’s significant holdings of $XRP align its incentives with promoting the token’s value. This relationship suggests that even with the introduction of $RLUSD, Ripple remains committed to ensuring $XRP retains its value-and-usage potential within the ecosystem. Ultimately, the strongest catalysts for $XRP’s valuation—including bullish factors such as regulatory clarity and ETF inflows—largely operate independently of whether $RLUSD or $XRP serves as the cash leg in transactions.
For holders of $XRP, the overarching conclusion is that while the increasing prominence of $RLUSD poses a legitimate challenge to the original thesis about $XRP’s role in institutional settlements, it does not spell out its demise. The landscape is evolving, and holders should remain vigilant by monitoring trends surrounding $RLUSD and its implications for overall market dynamics while also keeping track of other key catalysts that could drive $XRP’s value in the future.
