As the stablecoin market expands rapidly in 2025, many XRP holders have begun to question the token’s long-term relevance. However, Jake Claver, Managing Director at Digital Ascension Group (DAG), believes XRP remains indispensable, even as projects like RLUSD, PYUSD, and USD1 attract institutional adoption.
Rather than viewing stablecoins as a threat to XRP, Claver argues that the rising competition will enhance XRP’s value as a neutral bridge asset.
Ripple’s RLUSD Gains Ground in a Crowded Market
The stablecoin race has intensified significantly this year. In December 2024, Ripple launched RLUSD, a stablecoin designed for enterprise-level usage and cross-border transactions. Since its debut, RLUSD has experienced rapid growth, reaching a market capitalisation of over $400 million as of the time of this press release.
Ripple has already integrated RLUSD into its payment systems and made the token available on Ethereum and the XRP Ledger, with plans to expand it to additional blockchains. The move underscores Ripple’s focus on solving real-world liquidity issues for businesses and institutions.
At the same time, several other players have entered the stablecoin arena. WLFI, a Trump-inspired crypto project, launched the USD1 stablecoin. Meanwhile, Amazon, Walmart, and major banks like JPMorgan, Wells Fargo, Citibank, and Bank of America are reportedly developing or exploring joint stablecoin initiatives. PayPal’s PYUSD also continues to gain traction in both consumer and enterprise segments.
Why XRP’s Role Remains Critical
In response to concerns that these developments could push XRP aside, Claver shared a very different perspective. He emphasised that the core issue many overlook is trust and neutrality.
According to Claver, banks and financial institutions will hesitate to use stablecoins issued by rival corporations or competing banks. These entities won’t want to depend on assets managed by potential competitors, especially when dealing with high-value cross-border transfers or liquidity management.
Without a neutral asset to serve as a bridge between different fiat currencies, Claver believes financial institutions will fall back on the traditional model of holding Nostro and Vostro accounts. This system already locks up an estimated $27 trillion globally in idle liquidity. If trust issues with stablecoins persist, that figure could rise to $50 trillion, exacerbating inefficiencies.
XRP: The Neutral Bridge Asset
Claver argues that XRP offers a unique solution. Unlike RLUSD or other centralised stablecoins, XRP does not belong to any single entity, corporation, or bank. It functions as a neutral, decentralised asset that any institution can use without surrendering control or exposure to a competitor’s system.
While stablecoins like RLUSD will play an essential role in specific transactional flows, Claver maintains that XRP fills a different niche, one that becomes even more vital as the stablecoin space becomes more fragmented and competitive.
In his view, the more crowded the stablecoin environment becomes, the more necessary XRP becomes as a universal liquidity layer.
Related article: Ripple Pushes for Indicative Ruling in SEC Case with New Filing
Stablecoin Market Sees Explosive Growth
The market trends support Claver’s urgency. In 2025, the total stablecoin market cap has surged from $204 billion to over $256 billion, now accounting for nearly 9% of the entire crypto market.
Adoption has skyrocketed as well. In 2024 alone, stablecoin transfer volumes exceeded $27.6 trillion, surpassing the combined volumes of Visa and Mastercard. People now use stablecoins for remittances, payments, DeFi income strategies, and more.
Regulatory clarity is also improving. The recently passed GENIUS Act mandates that large stablecoin issuers hold reserves in U.S. dollars or highly liquid assets and undergo annual audits. Analysts at Standard Chartered project that the stablecoin market could reach $2 trillion by 2028, driven by improved regulation and increased institutional adoption.
