Ripple's dollar-pegged stablecoin RLUSD cannot replace XRP within the XRP Ledger (XRPL) ecosystem, an argument has been made.

On Aug. 10, blockchain outlet The Crypto Basic reported that Digital Ascension Group Chairman and cryptocurrency commentator Jake Claver (제이크 클레이버) wrote on X, formerly Twitter, that RLUSD and XRP have different roles even within the same network.

The question is which asset on the XRP Ledger serves as the intermediary link in transactions. Some have suggested that because RLUSD is a dollar-based stablecoin, it could weaken the need for XRP. Claver drew a line, saying the two assets are used differently. He compared XRP to a central hub in an air route network and explained that its core function is to connect two assets that lack direct liquidity.

Claver said this structural difference becomes larger as more assets are added. That is because liquidity pools would grow exponentially if hundreds of tokenised assets had to be directly connected to each other. He said that directly connecting 100 assets would require 4,950 pools, but using a single central hub would require 100 links. That is, he argued, XRP serves as that hub on the XRP Ledger.

As a practical example, he cited a trade between a tokenised money market fund and a yen stablecoin. In that case, he said, XRP can link the two assets so the trade can be handled in a single step, while users can receive the liquidity needed for the trade without noticing that XRP was used in the middle.

RLUSD, by contrast, has a different nature. Claver defined RLUSD as a digital dollar designed to maintain a value of $1. It is run based on reserve assets held by the issuer, and he cited as an advantage that it can settle quickly outside normal bank business hours.

He said not all tokenised asset trades pass through the dollar. He pointed to trades between tokenised bonds and commodities, or between two non-dollar assets, where RLUSD may not be the optimal intermediary asset.

He also cited RLUSD's issuance structure as a difference from XRP. RLUSD depends on the issuer's reserves, banking relationships and regulatory requirements. XRP, by contrast, is the native asset of the XRP Ledger and is not an asset issued by a specific company, so a company cannot freeze or restrict individual XRP units. He said that this structure allows XRP to function as a "neutral asset" even in environments where counterparties do not know or trust each other.

Claver's argument ultimately is that RLUSD and XRP are closer to complementary than competitive. RLUSD can be used for transactions that need dollar-denominated settlement, and XRP can work as an intermediary asset for trades between assets that lack direct liquidity. He summed it up by saying RLUSD can be seen as a "digital dollar" and XRP as a "bridge" connecting different assets.

This distinction could become more important as tokenised assets increase on the XRP Ledger. As asset types and trading pairs grow, liquidity can be dispersed across multiple markets. In such a situation, the view of separating a dollar settlement tool from a neutral intermediary asset within the network is emerging as a benchmark for understanding the XRP Ledger's future liquidity design and asset-connection structure.

"RLUSD makes ripple:native pointless." Someone on the XRP Ledger wants to swap a tokenized money market fund for a yen stablecoin & nobody is standing on the other side of that. It clears in seconds anyway The way that trade clears is the answer 1/25