XRP's Cross-Border Payments Role Threatened by Ripple's Stablecoin

XRP's role in cross-border payments is being threatened by Ripple's own stablecoin, RLUSD. According to Fire Hustle's Summer, banks may prefer using a dollar-backed asset for settlements rather than exposing themselves to XRP's fluctuations.

The SEC dropping its appeals and the emergence of seven XRP funds in the US are seen as developments that strengthen XRP's investment case. However, these factors have not translated into a stronger token price, with XRP falling 42% this year.

Summer argues that the real issue is whether RLUSD can reduce the need for XRP in cross-border payments. The stablecoin offers banks a less volatile alternative to move value without exposing them to XRP's price swings during settlement.