Ripple CTO Emeritus David Schwartz outlined three areas where XRP (XRP) holds structural advantages over stablecoins, arguing the token serves as a neutral bridge asset for cross-border payments rather than a direct competitor to dollar-pegged instruments.
Schwartz on XRP Currency Flexibility
In an X post, Schwartz said one of the main limitations of stablecoins is their dependence on a single fiat currency. A U.S. dollar stablecoin only tracks the dollar, which means it may not serve every international transaction.
Global payments frequently involve multiple currencies, and a matching stablecoin may not exist for every pair. XRP, by contrast, operates as a bridge asset that is not tied to any single fiat system.
That structure allows it to simplify cross-currency transfers without requiring multiple tokens.
Schwartz also pointed to control mechanisms built into stablecoins.
Issuers can freeze or reverse transactions under certain legal or regulatory conditions, and regulated entities must comply with court orders.
XRP transactions do not carry the same level of centralized control, making the token more resistant to censorship in cross-border transfers, he said.
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XRP Growth Potential vs. Stablecoin Stability
Schwartz further noted that stablecoins are designed to hold a fixed value and do not offer price appreciation. That makes them useful where stability is the priority but limits their role in other scenarios.
Long-term custody or settlements, for instance, could benefit from assets with growth potential. Schwartz said digital currencies like XRP can appreciate over time, giving them utility that fixed-value tokens cannot match.
Ripple Treasury Integration
The discussion comes as Ripple expands its enterprise tools.
The company has incorporated XRP and its stablecoin RLUSD (RLUSD) into a treasury management system that lets financial officers handle fiat and digital assets in one interface. Ripple Treasury now includes digital asset accounts, integrated liquidity solutions and connections to conventional banking.
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