RLUSD is the Biggest Existential Threat to XRP? Pundit Breaks it Down in Recent Warning

Ripple’s latest move to introduce RLUSD, a new multi-chain stablecoin, has raised major concerns about XRP’s future. A recent breakdown by prominent crypto analyst Stellar Expert has drawn attention to the risks XRP could face if RLUSD becomes widely adopted across other blockchain networks.

According to Stellar Expert, RLUSD is not simply an addition to Ripple’s ecosystem. It signals a possible change in how the company works, no longer requiring XRP as a key asset.

In comparison to Bitcoin and USDT, the analyst stated that USDT had migrated in a similar way to Tron from Bitcoin’s Omni layer to speed up transactions and keep costs down for its users.

RLUSD is currently available on Ethereum and the XRP Ledger. However, Stellar Expert noted that liquidity tends to flow to platforms with the most demand, and Ethereum still leads in decentralized finance activity. Due to how well Solana and Tron operate, the XRP Ledger may not remain as competitive as it once was.

Also Read: Ripple CTO Claims $6B Offer to Circle Was a Joke After Post Sparks Uproar

RLUSD: The Trojan Horse That Could Break XRP

1. The RLUSD Launch Isn’t Just a Stablecoin Drop
Ripple’s new stablecoin, RLUSD, is set to go multi-chain — launching on Ethereum and XRP Ledger.
Sounds bullish? Maybe not for $XRP holders.
Here’s why RLUSD might be the biggest… pic.twitter.com/sUOreijfvV

— Stellar Expert (@StellarExpert) June 3, 2025

Ripple’s Strategy with RLUSD May Undermine XRP’s Role

Stellar Expert warned that RLUSD could become the primary utility token within Ripple’s enterprise ecosystem. Its design allows for programmability, interoperability, and broader adoption across chains — all features that banks and institutions may find more useful than XRP’s limited function as a bridge asset.

The analyst pointed out that RLUSD can handle forex, settlement, and payments — all functions once attributed to XRP. If RLUSD succeeds outside the XRP Ledger, there may not be much reason for companies to continue using XRP. This means that XRP might be unneeded in the ecosystem it was intended for.

Stellar Expert also suggested that Ripple could be shifting its focus to building tools and infrastructure that operate independently of XRP. As RLUSD does not rely on XRP, it promotes the River’s direction without affecting it further.

Many are considering the release of RLUSD to be more than just the launch of a stablecoin. Stellar Expert states that it could be a tipping point for Ripple and may pose an existential risk to XRP. If many blockchain networks accept RLUSD, XRP could become less critical within Ripple.

Also Read: Unknown Entity Just Released 500,000,000 XRP From Escrow Into the Market – What is Happening?

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