As the stablecoin market gains momentum in 2025, with new entrants from both tech giants and traditional banks, some crypto investors have begun to question whether XRP still has a role in the evolving payments ecosystem. However, Jake Claver, Managing Director at Digital Ascension Group, believes XRP’s relevance may actually increase amid the growing competition.

The Rise of Stablecoins in the Crypto Economy

The stablecoin sector has experienced significant growth this year. Since January, the total market value of stablecoins has jumped from $204 billion to over $256 billion, now representing nearly 9% of the entire crypto market. This rise is fueled by increased adoption for everyday transactions, including international remittances, payroll, and business settlements.

In 2024 alone, stablecoins facilitated over $27.6 trillion in transfers—more than Visa and Mastercard combined. Their appeal lies in price stability, ease of integration with existing payment systems, and faster settlement times.

Ripple’s introduction of RLUSD in December 2024 is a prime example of how blockchain-native companies are expanding into the stablecoin space. Designed for business payments and cross-border transactions, RLUSD has already surpassed a $400 million market cap. Ripple has made the token available on both the XRP Ledger and Ethereum, with plans to extend to additional blockchains.

Meanwhile, legacy institutions and major corporations are quickly catching on. WLFI’s USD1, inspired by Trump’s political movement, is already circulating. Amazon and Walmart are reportedly planning their own stablecoins, while JPMorgan, Citibank, Bank of America, and Wells Fargo are jointly exploring a shared digital asset. PayPal’s PYUSD is also gaining traction.

Why XRP Still Matters

While the stablecoin surge appears impressive, Claver warns against assuming XRP’s role in payments is over. In fact, he argues the opposite—XRP’s neutrality makes it more important than ever.

“Many assume stablecoins will replace XRP, but that ignores one major issue: trust,” Claver said.

According to Claver, most financial institutions are unlikely to adopt a stablecoin issued by a competitor. For example, JPMorgan probably won’t be eager to move billions using a coin created by Citibank or Amazon. Relying on a rival’s controlled asset introduces risks and dependencies that many companies aren’t comfortable with.

This lack of trust between institutions leads to inefficiencies. The current system, where banks maintain large balances in Nostro and Vostro accounts to settle international payments, already locks up an estimated $27 trillion globally. Without a widely accepted, neutral bridge asset, Claver predicts this figure could rise above $50 trillion as institutions overcompensate to manage risk.

XRP as a Neutral Settlement Asset

Unlike corporate stablecoins, XRP isn’t governed by a single entity. Its decentralized nature allows it to function as a neutral bridge currency that no one party controls. This is exactly what Claver sees as its greatest strength in a fragmented financial world.

When banks or payment providers need to exchange value across borders, they need a fast, liquid, and unbiased asset to settle between currencies. XRP fills that role effectively—without asking any institution to give up control to a competitor.

Even with Ripple introducing RLUSD, Claver argues it doesn’t replace XRP’s position. Instead, stablecoins may work best for specific use cases—like internal settlements or consumer payments—while XRP remains the core bridge asset for high-volume, interbank settlements.

The Bigger Picture: Stablecoins and Regulation

As stablecoins continue gaining adoption, regulators are stepping in to provide more clarity. In June 2025, the U.S. Senate passed the GENIUS Act, a key piece of legislation requiring large stablecoin issuers to hold U.S. dollar reserves or high-quality liquid assets. The law also mandates annual audits to ensure transparency and safeguard consumer funds.

Analysts from Standard Chartered believe that with proper regulation in place, the stablecoin market could swell to over $2 trillion by 2028. If that projection holds true, the demand for reliable bridges between different types of digital assets—especially those issued by various institutions—will only increase.

This is where XRP comes into play. As the financial ecosystem grows more complex, the need for an independent settlement layer becomes even more critical.

Institutional Interest in Neutral Bridges

While many institutions experiment with stablecoins, most understand the limitations of relying solely on assets issued by peers or competitors. XRP, by design, avoids this conflict. It provides a universal settlement token that can work across ecosystems without being tied to one issuer or platform.

Furthermore, XRP’s deep liquidity, rapid transaction speeds, and growing ecosystem of tools and integrations make it ideal for high-volume, real-time cross-border flows. As financial institutions continue testing tokenized deposits, CBDCs, and custom stablecoins, there will be growing demand for an asset that can bridge them all without bias.

Conclusion: XRP’s Role Is Far From Over

Despite the headlines surrounding stablecoin adoption, the core problem of cross-institutional trust and interoperability still exists. XRP offers a solution that neither centralized stablecoins nor traditional systems can fully address.

Claver’s insight points to a future where XRP doesn’t compete with stablecoins—but complements them. As more digital currencies enter the market, the demand for a neutral, decentralized bridge will likely become even more essential. In that scenario, XRP’s role is not diminished—it’s elevated.

While stablecoins continue to reshape payments, XRP stands firm as the infrastructure that can unify them.