Ripple’s introduction of its new stablecoin, RLUSD, is causing a stir in the crypto community, sparking debates about the future of XRP, Ripple’s original digital asset. As RLUSD gains traction across exchanges and payment platforms, questions are emerging about whether XRP’s role is diminishing or simply evolving. Ripple executives, including CEO Brad Garlinghouse, have been quick to downplay concerns, insisting that RLUSD and XRP are designed to work together—not compete. Still, many investors and analysts are keeping a close eye on how this dynamic unfolds.

Since introducing in December 2024, RLUSD has rapidly gained momentum, particularly after being listed on major U.S. exchange Gemini. That move helped boost the stablecoin’s market cap to $317 million, with daily trading volumes reaching around $52 million. Its growing presence has caught the attention of traders and institutions alike, many of whom value the coin’s peg to the U.S. dollar for reducing volatility in cross-border payments. With this stability, RLUSD is becoming a preferred tool for liquidity provision and settlements, especially in corporate and institutional contexts.

Meanwhile, XRP’s role appears to be shifting. Once the centerpiece of Ripple’s payment solutions, XRP is now seen by some as playing a more limited function—primarily covering transaction fees on the XRP Ledger. Blockchain researcher Elena Schoen raised concerns recently, suggesting that Ripple may be quietly repositioning XRP in the background while RLUSD steps up to handle more crucial financial tasks, including cross-border transfers and fiat onboarding. Her analysis, shared on social media, pointed to what she described as a strategic but subtle transformation in Ripple’s ecosystem.

Fueling speculation is Ripple’s plan to fully integrate RLUSD into its Ripple Payments platform by the end of 2025. Garlinghouse has promoted RLUSD as a stable, efficient option for high-value transactions, especially appealing to banks and enterprises wary of crypto market fluctuations. This endorsement has led some to wonder whether RLUSD is not just complementing XRP, but gradually taking its place in Ripple’s core business operations.

In response to these growing concerns, several Ripple executives have spoken out to clarify the company’s position. President Monica Long emphasized that XRP and RLUSD are part of a dual-token strategy, offering clients flexibility depending on their needs—XRP for speed and decentralization, RLUSD for price stability. David Schwartz, Ripple’s chief technology officer, also weighed in, noting that XRP has technical strengths that RLUSD cannot replicate. These include auto-bridging and a decentralized structure that makes XRP resistant to freezing or external control.

Garlinghouse, too, has stressed that XRP remains critical to Ripple’s mission. In a January 2025 interview, he described RLUSD as simply fiat currency on-chain, useful for stability, while XRP continues to serve as a neutral, borderless bridge currency. He underscored that XRP is still vital for connecting different financial systems in a decentralized, fast, and cost-effective way.

At this stage, Ripple appears committed to maintaining both tokens as key parts of its ecosystem. While RLUSD is clearly gaining ground, it’s too early to say whether it will overshadow XRP in the long run. For now, Ripple’s strategy seems focused on offering more options, not phasing one out. Whether that balance holds throughout 2025 remains to be seen.