Evernorth has argued that Ripple’s RLUSD stablecoin does not take away from XRP’s usefulness in the XRP Ledger ecosystem.
RLUSD is being adopted more and more by exchanges, tokenized finance platforms and institutions, with some traders wondering if it might eventually make XRP redundant. Evernorth however, disagrees.
In a recent blog post, Evernorth’s Chief Business Officer Sagar Shah made the point that RLUSD and XRP are not interchangeable. RLUSD is designed to handle stable dollar-based transactions, while XRP helps get liquidity between various markets and trading pools linked up.
Evernorth Says XRP Still Powers XRPL Liquidity
Evernorth’s main argument is the XRP Ledger utility in liquidity routing.
According to Shah, tokenized markets become inefficient when every asset requires its own direct trading pair. XRP solves that problem by acting as an intermediary asset behind the scenes.
Shah summarized the process clearly:
“The XRP in the middle is what makes the trade possible.”
For example, a transaction involving RLUSD and a euro stablecoin can automatically route through XRP if that path offers the best liquidity and settlement efficiency.
The trader only sees the asset sent and the asset received.
Shah described XRP as the invisible infrastructure making those transactions possible without requiring a direct counterparty for every trade.
Ripple themselves have made the point that XRP plays an important bridging role in institutional DeFi infrastructure, it is the auto-bridge asset that makes it possible for users to exchange their tokens and settle trades more quickly.
That means RLUSD growth may actually increase XRP usage instead of replacing it.
RLUSD Expansion Is Accelerating Institutional Activity
RLUSD has been growing steadily over the past few months. Stablecoin liquidity on the XRP Ledger hit $446m recently, with RLUSD driving most of that growth.
Recent XRP Ledger transactions involving Ondo Finance, Ripple, Mastercard, and Kinexys by JPMorgan highlighted how tokenized Treasury settlement is beginning to move onto XRPL infrastructure.
And on top of that, the number of XRP Ledger transactions has soared over the last year. – Evernorth research showed a 65% increase over the past year from around 43 million to over 71 million, driven by enterprise settlement flows, RLUSD activity, and exchange usage.
This is about genuine adoption, not speculative hype around meme coins, Evernorth described.
Liquidity Pools and Lending Keep XRP Relevant
Evernorth also pointed to automated market makers, lending systems, and escrow tools as a few of the reasons why XRP is still so essential on the XRP Ledger.
Liquidity pools on the XRP Ledger need two way markets and XRP frequently acts as the intermediary asset connecting those pools together.
The XRPL decentralized exchange can automatically route transactions like RLUSD – XRP – EURS when direct liquidity between stablecoins is thin.
There’s also collateralized lending, another area where XRP is becoming more and more important.
According to Evernorth, XRP’s liquidity profile and lack of issuer restrictions make it useful for lending, collateral management, and escrow systems tied to tokenized assets.
The company has promoted permissioned environments, Compliant liquidity systems and tokenized asset infrastructure that’s designed for big financial firms to use.
And to make it all happen, those efforts increasingly rely on stablecoins and Bridge assets working together.
XRP and RLUSD May Grow Together
According to Evernorth’s comments, XRP Ledger utility may expand alongside RLUSD instead of compete against it.
Stablecoins take care of one problem which is keeping the price stable.
Bridge assets do another job which is helping liquidity flow between markets that are fragmented.
As Tokenized finance starts getting bigger, there may be a need for both.
This distinction is important because a lot of traders assumed that RLUSD would kill off XRP demand over time. But Evernorth says as the stablecoin volume grows, that can actually make XRP more useful if XRPL routing continues using XRP as the intermediary layer.
So for XRP Ledger, RLUSD is like the dollar layer and XRP is the liquidity engine underneath the whole network.
Conclusion
XRP Ledger utility remains at the heart of XRPL’s growing financial infrastructure, according to Evernorth’s latest analysis.
While RLUSD keeps on growing as a regulated stablecoin for settlement, XRP is still in charge of routing liquidity, trading pools, escrow services and connecting markets across the network.
As more institutions start using blockchain, Evernorth thinks that stablecoins and Bridge assets will likely evolve together rather than competing with each other.
Glossary
XRPL: XRP Ledger; Ripple’s blockchain for payments and tokenized assets.
RLUSD: Ripple’s regulated US dollar-backed stablecoin.
Bridge Asset: an intermediary asset that links trades between different markets.
AMM: Automated Market Maker for Decentralized liquidity pools
Frequently Asked Questions About XRP Ledger
What is RLUSD?
RLUSD is Ripple’s dollar-backed stablecoin designed specifically for regulated digital payments and settlement.
Why does Evernorth still think XRP is so important?
Evernorth thinks XRP is still vital for getting liquidity flowing and connecting assets across XRP Ledger.
How does XRP work as a bridge asset?
Essentially, XRPL can auto route transactions through XRP to make liquidity and settlement more efficient.
Is RLUSD replacing XRP?
According to Evernorth, no. RLUSD and XRP are doing different jobs and are meant to work together.
References
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