Ripple's Stablecoin Outshines XRP in Cross-Border Payments

XRP's potential to replace SWIFT in global banking networks has been a topic of discussion in the crypto world. However, its value has declined by 17.1% this year and 58.9% from its peak in July 2025. In contrast, Ripple's dollar stablecoin, RLUSD, has seen an impressive 88% growth in 2026, bringing its market cap to $2.52 billion.

SWIFT primarily transmits standardized instructions between banks, while the actual money transfer occurs separately through accounts that banks maintain with one another. Changing the communication method is different from changing how the money moves. The XRP Ledger can facilitate messages and requires a small XRP fee for each transaction, but this fee doesn't create significant demand to buy XRP.

Ripple promotes XRP as a solution for banks to move parked money, but the sender assumes the risk of XRP's price fluctuations while the token is in transit. Given that XRP has dropped 46.8% over the past year, this risk is significant. In contrast, using a dollar stablecoin like RLUSD is straightforward and maintains its original value.

Firms like SoFi Technologies are building their own payment systems using stablecoins they issue themselves, maintaining customer relationships and transaction data. This trend incentivizes larger financial institutions to create their own solutions, posing a double challenge for XRP. SWIFT has also adapted to the changing landscape by launching its own blockchain ledger.