Garlinghouse Places $RLUSD Alongside $XRP

Ripple CEO Brad Garlinghouse stated on X on Nov. 3 that $RLUSD and $XRP served complementary purposes, identifying other stablecoins as $RLUSD’s competitors. He addressed the relationship in separate replies to users on X, who discussed liquidity and the assets’ different functions.

Garlinghouse outlined where $RLUSD competes:

“$RLUSD isn’t competing with $XRP. It’s competing with other stablecoins. Use case matters, and I want those use cases running on the XRPL.”

“$RLUSD isn’t competing with $XRP. It’s competing with other stablecoins. Use case matters, and I want those use cases running on the XRPL.”

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His statement was in response to a post arguing that deeper liquidity on the $XRP Ledger (XRPL) could make $XRP easier to use over time, while describing the price impact without direct use as indirect. That post raised a broader question about adoption: whether $XRP would become a specialized institutional asset with restricted liquidity or achieve widespread use.

How $XRP Supports $RLUSD Activity on the Ledger

For businesses settling dollar-denominated obligations, $RLUSD offers a payment asset designed to maintain a dollar value through its reserve backing and redemption structure. Ripple identifies payments, remittances, and treasury flows among its intended uses. That focus allows a company to move a dollar balance onchain while keeping the amount it owes and pays expressed in the same currency.

Every $RLUSD transfer on XRPL falls under the network’s $XRP transaction fee requirements, which consume a small quantity of $XRP. That amount is destroyed, with the required fee varying by transaction type and network load. This network charge is separate from the value being transferred, so sending $RLUSD does not require converting the payment amount into $XRP.

Beyond fees, $XRP can connect token markets when exchanging through it offers a better rate than a direct trade. Evernorth chief business officer Sagar Shah described this liquidity-routing role alongside $RLUSD in May, positioning the stablecoin as the dollar-denominated asset. The ledger’s exchange mechanism can combine direct trades with routes through $XRP to obtain a better overall rate.

Customer Needs Shape Ripple’s Asset Choices

In a separate reply to another user on X, Garlinghouse endorsed $RLUSD and $XRP’s distinct roles:

“Complementary, not competitive.”

“Complementary, not competitive.”

The post he replied to explained that accounts require $XRP reserves, while holders opt into $RLUSD through a trust line, an account setting for accepting an issued token. $XRP itself can be held without establishing a trust line.

At Swell, Ripple’s annual conference, Garlinghouse had described a customer-focused approach to $XRP adoption in remarks shared Oct. 28. He said Ripple would prioritize $XRP where it suited customer needs while using fiat currencies or $RLUSD for other transactions. He preferred $XRP handling a small share of a customer’s activity over none.

Among institutional providers supporting both assets, BNY confirmed Oct. 27 that eligible clients could safeguard, hold, and transfer $XRP and $RLUSD through its custody platform. The bank incorporated that access within its existing governance and operational controls. Its expanded custody offering built on BNY’s role as the primary custodian of $RLUSD reserves.