Jake Claver, Managing Director at Digital Ascension Group, suggests that XRP’s importance in the crypto landscape isn’t going away, even with the rising popularity of stablecoins. While some in the XRP community are concerned that Ripple’s launch of RLUSD and broader stablecoin adoption might overshadow XRP’s payment utility, Claver sees it differently. He argues that as stablecoins become mainstream, XRP’s role could expand rather than shrink, especially in bridging liquidity and enabling cross-border transactions.
Will XRP Stay Relevant as Stablecoins Rise?
Jake Claver argues that XRP continues to serve a vital purpose, even with stablecoins gaining momentum. While some believe stablecoins could replace XRP in global transfers, Claver highlights a key issue: trust. Financial institutions are unlikely to adopt stablecoins controlled by competitors, as that would mean depending on a rival’s system. As more firms issue their tokens, this lack of trust could prevent true interoperability.
He explains that without a neutral bridge like XRP, the current system—where $27 trillion sits in Nostro and Vostro accounts—could become even more inefficient. Banks may need to lock up even more capital to manage settlement risks, potentially raising that figure to over $50 trillion. XRP, being decentralized and not tied to any one entity, offers a trustless way to connect different currencies and streamline global payments.
Ripple’s RLUSD Gains Momentum in Stablecoin Push
Ripple made a strong entry into the stablecoin market with the launch of RLUSD in December 2024, aiming to support enterprise payments and international transfers. The token has quickly built momentum, now boasting a market cap of over $400 million. RLUSD is already integrated into Ripple’s payment network and available on both Ethereum and the XRP Ledger, with additional blockchain support in development.
Major Institutions Enter the Stablecoin Arena
Beyond Ripple, the stablecoin race is drawing attention from a wide range of influential players. The Trump-aligned WLFI group has launched the USD1 stablecoin, while tech titans like Amazon and Walmart are reportedly preparing to issue their digital currencies. Major banks, including JPMorgan, Wells Fargo, Citibank, and Bank of America, are collaborating on a joint stablecoin initiative. PayPal, meanwhile, has already launched PYUSD, marking its official entry into the space.
Why XRP Stands Apart from Stablecoins
While stablecoins like RLUSD may serve specific transactional needs, Jake Claver argues they can’t truly replace the role XRP plays in global finance. As more institutions release their stablecoins, the market becomes increasingly fragmented, with each token tied to the interests and control of a particular entity. This creates silos rather than seamless integration.
In contrast, XRP stands out as a decentralized, neutral asset that isn’t governed by any single party, making it an ideal bridge for cross-border payments and currency exchange. Claver believes that as the stablecoin space becomes more competitive and crowded, the greater the need will be for a trusted, independent solution like XRP.
Final Thoughts
As stablecoins grow more popular and big companies join the market, the way money moves around the world is quickly changing. But despite this, Jake Claver believes XRP still has a strong role to play. Unlike stablecoins, which are controlled by specific companies or banks, XRP is open and neutral, meaning no one owns it. This makes it helpful in connecting different payment systems and currencies. With trillions of dollars stuck in outdated banking systems, Claver says the need for a shared, trusted asset like XRP is only getting bigger. In his view, XRP won’t fade—it’s becoming even more important.
