RLUSD Threatens to Dethrone XRP in Cross-Border Payments

Ripple's introduction of its dollar-backed stablecoin RLUSD has sparked concerns among XRP holders that it may replace XRP as a bridge asset in cross-border settlements.

The stablecoin, which is pegged to the US dollar, offers banks a less volatile option for their international transactions, potentially reducing demand for XRP.

XRP's price has already dropped 42% this year despite positive developments such as the SEC dropping its appeals and increased institutional access.

Analyst Edo Farina warns that if banks prefer stablecoins over XRP, it could significantly affect XRP's long-term value, limiting its use mainly to transaction fees rather than liquidity provision.