The stablecoin boom in 2025 has brought in several big crypto names into discussion for cross-border payments. The $155 trillion market seeks an efficient way of settling international payments within minutes, and Ripple’s XRP Ledger constantly registers daily trading volumes above $10 billion.
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Moreover, popular stablecoins like Tether USD (USDT) & Circle USD (USDC) are now challenged by Ripple’s own RLUSD stablecoin, which just acquired a license in Dubai, UAE. Regardless, Ripple’s Chief Technology Officer David ‘JoelKatz’ Schwartz named XRP coin as the top choice for cross-border payments despite the stablecoin boom.
XRP’s Volatility: Beneficial For Big Traders?
“There are use cases where volatility isn’t a minus, or is even a plus”. Ripple’s CTO described the 300 banks holding XRP coin as a perfect opportunity for businesses to yield long-term gains without being very risk-averse, as Ripple (XRP) rocketed 404% in a yearly time frame.
Further on, Mr. Schwartz elaborated on why a default bridge currency isn’t likely to be a stablecoin. While being tied to a fiat asset, stablecoins are always limited to jurisdictions, making it nearly impossible to use the same digital currency across all transactions.
A great example of this is Tether’s (USDT) unavailability in the European Economic Area (EEA) due to MiCA laws that kicked in in January, 2025. With a similar market cap to Ripple coin (XRP), USDT processed $113 billion in 24-hour trades on Spot markets, edging Ripple’s $8.88 billion by 13 times, according to CoinGecko’s real-time stats.
On The Flipside
- Last month, Ripple applied for a banking license in the United States (USA) to legally conduct transactions in RLUSD, potentially challenging the highly-popular Circle USD (USDC).
- USDC stablecoin remains the more popular one in terms of everyday transactions, but falls below Ripple’s XRP coin by market capitalization, currently $64 billion to $179.65 billion.
Why This Matters
Grabbing a bite of the $155 trillion market would open up new doors for the blockchain industry, residing at $3.83 trillion after taking a 6.9% hit linked to Trump’s global tariff update.
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People Also Ask:
Ripple’s CTO, David Schwartz, emphasizes XRP’s liquidity and neutrality, which excel for bridging cross-border payments, unlike RLUSD’s fiat stability focus. XRP drives Ripple’s payment strategy.
Ripple designs RLUSD as a USD-pegged stablecoin for stable transactions, while XRP bridges fast, liquid cross-border settlements. Both assets complement each other, Schwartz explains.
No, XRP’s role as a bridge asset persists due to its deep liquidity & ability to connect multiple currencies, even with RLUSD’s growth. Ripple sees them as complementary.
XRP’s volatility is less of an issue as it’s held briefly during transactions, and its scalability suits a multi-currency world, unlike single stablecoins like RLUSD.
XRP’s priority ensures its continued use in Ripple’s ecosystem, potentially boosting demand as RLUSD drives XRPL activity. Check Ciphera for fresh updates.
