Ripple CTO Confirms XRP’s Long-Term Role as a Crucial Cross-Border Payment Asset

I believe that the core driver of XRP’s long-term value remains its fundamental role within Ripple’s payment infrastructure as a bridge asset, especially in cross-border transactions. Ripple CTO David Schwartz emphasized that despite the recent focus on RLUSD, the stablecoin, XRP continues to be central due to its proven liquidity and its essential function on the XRP Ledger, which supports fast and cost-effective currency exchanges. This highlights how XRP’s real-world utility and adoption within financial workflows are crucial to its valuation. Schwartz’s remarks effectively address concerns about the potential overshadowing of XRP by new stablecoins, clarifying that XRP’s utility in facilitating cross-currency transactions and as a bridge asset far exceeds the usage of stablecoins like RLUSD, which are better suited for specific use cases requiring a fixed value. As the XRP Ledger gains traction and transactional activity increases, demand for XRP will likely grow, reinforcing its intrinsic value. The connection between increased ledger activity and higher demand for XRP underscores its role as a vital asset for blockchain-based financial mechanisms. Furthermore, Schwartz’s distinction between stablecoins and XRP clarifies that, although stablecoins serve specific purposes like collateral and avoiding volatility, they do not replace digital assets like XRP in long-term, real financial applications. In fact, demand from institutional adoption and expanding use cases for XRPL will probably elevate XRP’s importance, making it an indispensable part of global digital finance infrastructure. Overall, XRP’s embedded utility, especially in a market that values rapid and efficient settlement, positions it well for sustained growth and potential price appreciation.