Questions about the relationship between XRP and Ripple’s stablecoin, RLUSD, continue to divide sections of the cryptocurrency community. Some investors have wondered whether the introduction
Questions about the relationship between XRP and Ripple’s stablecoin, RLUSD, continue to divide sections of the cryptocurrency community.
Some investors have wondered whether the introduction of RLUSD signals that XRP is no longer central to Ripple’s payments strategy. Crypto analyst Mariano Sevilla has now addressed those concerns, presenting a detailed explanation of why he believes the two digital assets were designed to work together rather than compete.
In a thread shared on X, Sevilla stated that many investors misunderstand the purpose of RLUSD because they assume it was created to perform the same function as XRP. According to him, that assumption overlooks the technical roles each asset plays within Ripple’s broader payments infrastructure.
Si XRP era la solución definitiva para los pagos globales, ¿por qué Ripple creó la stablecoin RLUSD? La comunidad está dividida entre el miedo a la sustitución y la confusión. La realidad técnica es mucho más profunda. Abro hilo para inversores serios. 1/5 https://t.co/wCjQ4DtVde
— Mariano Sevilla (@MarianoSevillaY) June 30, 2026
Sevilla opened his thread by posing a question that has become increasingly common among XRP holders: if XRP is the definitive solution for global payments, why did Ripple introduce RLUSD?
He noted that opinions within the community remain divided, with some expressing concern that RLUSD could eventually replace XRP. In contrast, others remain uncertain about how both assets fit into Ripple’s long-term strategy. However, he maintained that the technical explanation is more nuanced than those debates suggest.
According to Sevilla, the biggest mistake is treating XRP and RLUSD as competing products. He explained that financial institutions require precise account balances and generally avoid exposure to unnecessary price volatility. Because of that, he said XRP was never intended to function as a stable store of value before transactions occur.
Instead, Sevilla described XRP as an asset built to transfer value efficiently between markets. In his view, its market price fluctuations are an inherent characteristic rather than a flaw in its design.
Sevilla went on to explain that RLUSD fulfills a separate institutional need. Rather than replacing XRP, he said the stablecoin provides the price stability that banks and other financial institutions expect before initiating transfers.
He characterized RLUSD as the form of money that institutions are already comfortable holding because its value remains stable. XRP, meanwhile, serves as the underlying technical asset that enables efficient movement of value across networks.
From this perspective, Sevilla believes each asset performs a distinct function within the same payment system. One offers predictable value, while the other provides the mechanism for transferring that value across markets.
Sevilla also pointed to the XRP Ledger’s transaction mechanics as evidence that RLUSD adoption may support XRP rather than weaken its role.
He noted that every RLUSD transaction executed on the XRP Ledger requires a network fee that is paid in XRP and permanently burned. As a result, he said greater RLUSD activity on the ledger would translate into higher transaction volumes, increased liquidity, and a more consistent rate of XRP being removed from circulation through fee burns.
Based on that framework, Sevilla finalised that XRP and RLUSD should be viewed as complementary components of a shared financial infrastructure instead of rival assets. He added that evaluating either one in isolation fails to capture how the overall system is intended to function.
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The post Why Ripple Created RLUSD Despite XRP and Its Utility appeared first on Times Tabloid.
