Confusion around XRP’s status isn’t new, especially with Ripple’s growing presence in payments and the launch of stablecoins like RLUSD. Is XRP a Stablecoin?
Here’s the straight answer: XRP isn’t a stablecoin. It’s a digital asset with a price that moves with the broader crypto market, while stablecoins such as RLUSD and USDC are designed to hold steady at one dollar.
The difference matters now more than ever. Stablecoins are gaining new importance for payments, savings, and DeFi.
Ripple’s entry into the stablecoin space has made it even easier for people and businesses to move money quickly, but traders and institutions need to know the distinction to manage risk and take advantage of new tools.
This guide sorts out what sets XRP apart, why stablecoins matter, and how Ripple’s network fits in. If you want up-to-date clarity, you’re in the right spot.
You may want to check out, Ripple Stablecoin and XRP : Unique Nature, for deeper understanding.
What Is XRP? Understanding Its Role in Crypto
XRP has sparked plenty of debate in crypto circles, especially with Ripple’s recent moves and the rise of new payment coins. While many people lump XRP in with stablecoins, its identity and use in the crypto world are very different.
Understanding what XRP is (and isn’t) helps you spot trends, avoid confusion, and make smarter choices if you’re trading or sending money globally.
Basics of XRP
XRP is a digital asset created by Ripple Labs in 2012. Unlike Bitcoin, which was launched as a way to make peer-to-peer payments without banks, XRP’s goal is to improve the speed and cost of cross-border transactions for financial institutions.
Ripple designed XRP as a bridge currency. That means it acts like a middleman when banks and payment providers need to swap one national currency for another.
With this focus, XRP is heavily used in Ripple’s products but can also be traded on hundreds of crypto exchanges. Check out what Tickeron has to say about XRP: What is Ripple?
How XRP Differs From Stablecoins
While both XRP and stablecoins are known for their speed and reliability, their relationship to price is what truly sets them apart:
• XRP’s price moves with market demand. If more people want to buy or use XRP, the price goes up. If not, it drops. You might see big swings in XRP’s price in just a few hours.
• Stablecoins like RLUSD or USDC stay pegged to a currency, usually $1. This “peg” means the price barely moves, offering predictability traders and businesses depend on for savings or making payments.
• Purpose isn’t the same. XRP is optimized for fast settlement and liquidity between different currencies, while stablecoins are built for stability.
XRP’s Use Cases in Crypto and Finance
XRP’s design lets it shine in several areas:
• Cross-border payments: Banks and money senders can use XRP to move value internationally, cutting down both time and fees.
• Liquidity provision: Crypto exchanges may use XRP to provide liquidity and bridge trades between different assets.
• Retail trading: Many traders buy and sell XRP for profit or to hedge against other coins.
Here’s a quick comparison that shows how XRP lines up with stablecoins in these common scenarios:
| Use Case | XRP | Stablecoins (ex: RLUSD, USDC) |
|---|---|---|
| Cross-border payments | Fast, low-cost, market-priced | Stable, but usually slower via banks |
| Hedging value | Risk of price swings | Stable value, low volatility |
| Trading pairs | Fluid and widely listed | Often used as a “base” currency |
Common Misconceptions About XRP
Some confusion comes from XRP’s connection with banks and payments. Because Ripple markets its network to traditional finance and is developing its own stablecoin (RLUSD), people sometimes assume XRP is just as stable.
The reality is that:
• XRP and RLUSD serve different purposes even though they share the same network.
• Holding XRP means accepting risk from price changes, just like with Bitcoin or Ethereum.
• You can use XRP to move money but not to store stable value.
Knowing the real role of XRP simplifies decisions for traders, businesses, and anyone interested in global payments.
Are Stablecoins and XRP the Same Thing?
It’s easy to see why people mix up XRP and stablecoins, especially since they’re both talked about in the context of fast payments and blockchain tech.
The reality is, XRP and stablecoins like RLUSD and USDC play very different roles in the crypto economy. Comparing them is like lining up apples and oranges, they both matter, but they’re built for different reasons.
What Makes a Stablecoin?
Stablecoins are cryptocurrencies designed to keep their value consistent, usually pegged to the US dollar. If you buy one USDC or RLUSD, you expect it to be worth exactly \$1, no matter what happens in the crypto market.
Behind each coin, there are reserves such as cash or treasury bills locked away to guarantee it stays at \$1. Check similar article on our, Ripple Stablecoin RLUSD for Cross-Border Payments.
Why do people love stablecoins? Here’s what stands out:
• Price stability: You don’t have to worry about big swings.
• Easy transfers: Move dollars on-chain in seconds, with no banks or wire delays.
• Global use: Anyone with a crypto wallet can hold and send digital dollars.
These features make stablecoins popular for payments, payroll, trading, and saving during volatile markets.
Where XRP Fits Differently
While stablecoins chase stability, XRP is all about liquidity and speed. XRP’s price floats like Bitcoin or ETH, changing from minute to minute based on supply and demand.
Even though it runs on some of the same networks as RLUSD, the end goal is different. Ripple built XRP as a bridge asset, and banks and payment companies use it to swap money between different currencies, cutting costs versus traditional methods.
Some key differences:
• XRP’s value changes with the market. It’s not tied to dollars, euros, or any other asset.
• XRP is used to provide instant liquidity. Stablecoins are more for storing or transferring stable value.
• You can watch XRP’s price move up or down all day, while RLUSD and USDC stay locked at $1.
Technical Distinctions Between XRP and Stablecoins
Peering under the hood, both XRP and stablecoins share blockchains, but the similarities pretty much end there. Stablecoins like RLUSD can be built on the XRP Ledger (XRPL) and on Ethereum.
They follow strict rules for backing every token 1:1 with dollars, are regulated, and offer transparent reserves thanks to regular audits.
XRP, by contrast, is not backed by any reserves. Its value is determined solely by free trading on exchanges.
While RLUSD and USDC depend on outside companies to guarantee their value, XRP’s utility comes from being fast, borderless, and always on, even when banks are closed.
A quick table helps clarify:
| Feature | XRP | Stablecoins (RLUSD, USDC) |
|---|---|---|
| Backing | None, market-driven | 1:1 cash, T-Bills, reserves |
| Value Fluctuates | Yes | No (aims to be $1 always) |
| Main Use | Bridge currency, liquidity | Stable payments, savings |
| Regulation | Commodity (since 2025) | Money transmitter, trust company |
| Speed & Fees | Fast, lowest on XRPL | Fast, but depends on network |
Why the Confusion?
Ripple’s move into the stablecoin space with RLUSD, on the same ledger where XRP lives, has caused many casual users to blur the lines between the two. You might see both XRP and RLUSD tickers on the same dashboard.
Sometimes people assume if both coins move fast and use the XRPL, they must be the same thing under the hood.
In reality, holding XRP means you’re exposed to price swings, a little like stocks.
Holding stablecoins, on the other hand, is more like having a digital checking account. Both are useful, but for very different reasons.
Understanding this difference helps you make better choices, whether you’re trading, sending money, or just trying to keep your crypto portfolio balanced.
What Makes XRP Different From Stablecoins Like RLUSD, USDC, or USDT?
While XRP and stablecoins like RLUSD, USDC, or USDT might look similar on a crypto dashboard, they fill very different jobs in the digital money system.
The core distinction comes down to how their value is set and how they support payments and liquidity on the Ripple (XRPL) network.
When you truly grasp what sets XRP apart, you can use both asset types more strategically, especially as the XRPL ecosystem expands deeper into payments and DeFi.
How Do XRP and Stablecoins Work Together in the Ripple Network?
The Ripple network, built around the XRP Ledger (XRPL), is designed for interoperability. This means digital assets of all kinds, native tokens like XRP or tokenized stablecoins, can move fluidly across the network.
How does this look in practice? Here’s how XRP and stablecoins complement each other:
• Asset Swaps: Users can quickly swap XRP for RLUSD, USDC, or USDT on XRPL-based exchanges or through payment channels. This lets traders hedge, arbitrage, or move value between volatile and stable assets, often in seconds.
• Cross-Border Payment Flows: In global payments, XRP often acts as a bridge asset. For example, a sender can convert yen to XRP, transfer XRP across borders, and then instantly swap to RLUSD or USDC on the receiving side. This eliminates long wait times and high wire fees.
Partnerships Fueling Integration:
Ripple’s push into stablecoins gained major traction with its RLUSD launch, powered by support from SBI Holdings.
Ripple and SBI announced RLUSD distribution in Japan, with SBI VC Trade as the exclusive distributor.
This move follows regulatory approval in Japan, unlocking easier business and consumer access to digital dollars.
SBI’s involvement doesn’t stop there. The group also partners with Circle (the issuer of USDC) to boost stablecoin adoption and to support institutional-grade DeFi tools.
Through these ties, the XRPL is becoming a hub for both stablecoins and traditional crypto liquidity.
Liquidity and DeFi Growth on XRPL:
The rise of stablecoins has directly benefited XRP holders and users. More RLUSD, USDC, and USDT on XRPL means:
• Deeper liquidity pools for trading and instant settlement.
• More robust DeFi tools, like lending and non-custodial swaps, use both XRP and stablecoins as foundational assets.
• New cross-chain bridges let users flow value between XRP, stablecoins, and even assets from networks like Ethereum or Solana.
RLUSD, for example, is gaining traction not just as a payment method but as a pillar for enterprise-grade DeFi.
Every RLUSD transaction on XRPL burns a small amount of XRP, which helps support XRP’s value, and ties stablecoin usage directly to the health of the overall network.
As these networks and partnerships deepen, Ripple, SBI Holdings, and other institutional players are creating an environment where XRP and stablecoins amplify each other’s strengths, not compete.
This has turned the XRPL into one of the most flexible settlement layers in crypto, whether you want the speed of XRP or the stability of a token like RLUSD.
Why the Confusion?
Even with years of XRP headlines and Ripple’s surge into the stablecoin world, confusion about XRP’s true nature sticks around.
Some call it a stablecoin, others still argue about its level of decentralization, and a few mix up what powers the network and who controls it.
These myths are fueled by fast-changing crypto trends, Ripple’s own stablecoin (RLUSD), and debates across finance forums.
Clearing up these issues matters if you want to use XRP with clear expectations or avoid costly mistakes.
Mistaking XRP for a Stablecoin
Ripple’s launch of RLUSD on the XRP Ledger (XRPL) made some users think that XRP itself had become a stablecoin.
It’s easy to get tripped up if you see both XRP and RLUSD tickers side by side inside the same wallet or dashboard.
• XRP’s value is set by the market. It trades like Bitcoin or Ethereum, moving up and down with every big news week.
• Stablecoins like RLUSD or USDC hold steady at $1. These assets are fully backed by reserves, with the main goal being reliability for payments and savings.
XRP runs on the same network as RLUSD but keeps a floating price. RLUSD, by contrast, is pegged to the U.S. dollar and designed to avoid volatility.
Confusing the two could mean making risky moves with your funds, expecting stability when there isn’t any.
Is the XRP Ledger Centralized or Controlled by Ripple?
A common myth is that Ripple controls everything on the XRP Ledger. This stems from the fact that Ripple created XRP and still holds a share of the total supply in escrow.
• Fact: The XRPL is a decentralized blockchain, maintained by over 100 independent validators operated by businesses and individuals across the globe.
• Network rules can’t be changed by Ripple alone. Any changes need at least 80 percent validator agreement over two weeks.
• Ripple operates less than 10 percent of validation nodes. This means no single player has enough power to dictate consensus or freeze accounts.
It’s true that Ripple is a top stakeholder and can influence the ecosystem, but the public validator model keeps the system open and fair.
Persistent confusion about decentralization can turn people away from exploring XRP’s real benefits.
No, XRP Cannot Be Mined or Frozen
Another misconception is that XRP works like Bitcoin or Ethereum and can be mined, or that Ripple can freeze your XRP at will.
• XRP was fully created at launch (pre-mined), so no more XRP can be mined today.
• XRP tokens cannot be frozen by Ripple or any single entity. The XRPL’s public design and validator consensus make this impossible.
These differences are what keep XRP unique in the crypto world. Mining confusion comes from users who compare all blockchains, but XRP’s approach is built for speed and efficiency, not for mining rewards.
RLUSD vs. XRP: Not Interchangeable
Ripple’s RLUSD stablecoin is specifically built for use cases where dollar stability is the target; think payroll, saving, or international business contracts. XRP, by contrast, shines as a bridge asset for liquidity and rapid settlement.
Confusion often comes from the shared infrastructure and similar branding but missing the purpose behind each asset leads to mistakes.
• Using RLUSD lets businesses lock in value and avoid price swings.
• Using XRP opens the door to fast swaps across currencies but means taking on more price risk.
Regulatory News and Rumors Cloud the Basics
Legal drama, especially around the SEC’s lawsuit, led people to believe XRP might be “banned” or reclassified in ways that would force it into a stablecoin mold. This isn’t the case.
• The August 2025 SEC ruling made clear that XRP is not a security on public exchanges.
• Ripple paid a penalty but the network, asset trading, and decentralized ledger remain unchanged.
Regulatory headlines can spark panic or hope, depending on how people interpret the news. Knowing the facts keeps investors from trading based on hype or fear.
The Role of Marketing and Social Media
Influencers, official announcements, and crypto news sites sometimes add to the confusion rather than clear it up.
Terms like “Ripple coin” and dramatic headlines about “XRP stability” circulate widely.
• Mixing up company updates and XRPL features leads to myths.
• Speculative posts can mislead readers into seeing XRP as something it’s not, like a crypto “bank coin” or a substitute for digital dollars.
Because trends move quickly, some old misconceptions pop up again and again. Staying focused on actual features and real use cases is the best way to avoid repeating past misunderstandings.
Conclusion
XRP is not a stablecoin and its value will always move with the ups and downs of the crypto market. Understanding this difference is key, especially as stablecoins like RLUSD and USDC keep growing on the XRP Ledger.
For traders, businesses, and everyday crypto users, knowing what separates XRP from stablecoins means you can better manage risk, pick the right asset for payments or savings, and avoid common mistakes.
The steady rise of RLUSD and USDC shows how important it is to choose the right tool depending on whether you want speed, liquidity, or stability.
If you want to get more out of stablecoins or cross-border payments, keep exploring guides and resources that break down the best ways to use these assets.
You can also compare some stablecoins by reading, USDC vs USDT: Which is Better? A Detailed Comparison.
Adeyemi Adetilewa is interested in blockchain, cryptocurrency, and web3. When he is not looking for the next alpha, he is busy working as a husband and father.