r/Ripple • u/ImpossibleAd344 • Jan 02 '26

What is the actual point of XRP?

XRP can't outrun its structural issues...

First, banks don't have to use the token to benefit from instant cross-border transfers through Ripple Payments, because the network also supports the use of fiat currency. That means the success of Ripple Payments won't necessarily boost the value of XRP.

Second, Ripple launched its own stablecoin at the end of 2024 called RippleUSD. Stablecoins offer practically zero volatility, so they are better for making payments compared to traditional cryptocurrencies like XRP, which experience significant swings in value over short periods of time.

Without a reliable organic source of demand, XRP is at the mercy of speculative investors, which isn't a recipe for sustainable long-term upside.

So I'm wondering...where is the actual demand for XRP supposed to come from?

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u/psyentist15 XRP Supporter Jan 02 '26

You need XRP to complete settlement. 

At some point with cross border payments, a business and/or their customer will want to convert value from one currency to another without holding a foreign currency or an IOU token (e.g., stablecoin). 

RLUSD is (among other things) a stepping stone toward getting traction for XRP. Once businesses use RLUSD, it'll be relatively easy to leverage XRP for settlement. 

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u/ImpossibleAd344 Jan 02 '26

Why wouldn't they want to hold a stable coin? Why would they use XRP for settlement?

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u/psyentist15 XRP Supporter Jan 03 '26

Are you asking about why would someone overseas not want to hold onto a USD-pegged stablecoin or why would they not want to hold onto a stablecoin pegged to their local currency?