Charles Schwab’s Head of Crypto Research, Jim Ferraioli, says the $XRP Ledger (XRPL) is evolving from a payments blockchain into a network for stablecoin transactions.
He shared this view while speaking on the Thinking Crypto podcast with host Tony Edward. Ferraioli discussed how different blockchain networks are specializing in distinct use cases as the crypto industry consolidates.
“I think everyone’s gonna find their niche,” Ferraioli said, pointing to Ethereum, Solana, Tron and XRPL as examples of networks developing distinct roles.
$XRP Ledger Moves Beyond Payments
According to Ferraioli, Ethereum remains the dominant general-purpose smart-contract blockchain for tokenized real-world assets. Solana, meanwhile, aligns more with active trading due to its high transaction throughput. He described Tron as a “pure play” stablecoin network before turning to XRPL.
“$XRP Ledger is making the shift from kind of a payments network to more of a stablecoin transaction network,” Ferraioli said.
The comments highlight how institutional observers are viewing XRPL’s evolving utility as stablecoins and tokenized assets become more prominent across financial markets.
$XRP Ledger’s Stablecoin Shift Gains Real-World Traction
Recent $RLUSD supply data also points to the $XRP Ledger’s growing role in stablecoin activity. Specifically, XRPL’s $RLUSD supply reached approximately $801.8 million in June, slightly surpassing Ethereum’s roughly $793.1 million. The shift is notable because $RLUSD initially launched with most of its supply on Ethereum in December 2024.
The change follows stronger issuance activity on XRPL, with millions of $RLUSD minted on the network while Ethereum recorded larger redemption activity. With XRPL now holding the largest share of the $RLUSD supply, the data provide a concrete example of the stablecoin-focused evolution Ferraioli described.
Big Banks Are Watching Blockchain Specialization
Meanwhile, Ferraioli also pointed to the Depository Trust & Clearing Corporation (DTCC) working with multiple blockchain networks, including Stellar, as evidence that financial institutions are exploring different chains for different purposes.
Rather than expecting one blockchain to dominate every application, Ferraioli said specialized networks will coexist with a relatively small number of Layer-1 blockchains handling most of the industry’s activity.
He estimated that perhaps 20 Layer-1 networks will remain relevant over time, while the majority of activity will ultimately concentrate around the top three or four.
Crypto’s Winners and Losers Are Emerging
Ferraioli compared the current blockchain landscape to the early internet and search-engine industry. At the time, numerous competitors emerged before a handful of dominant players, such as Google, captured most of the market.
He argued that a similar consolidation is already underway in crypto, with some networks gaining meaningful market share while others struggle to attract activity.
Ferraioli also argued that the crypto industry’s downturn ultimately proves healthy by eliminating excess leverage and redirecting capital toward areas with stronger long-term growth prospects. In his words:
“Recessions are painful, but they’re necessary. They kind of wash out excess leverage and shift capital into new avenues of growth and out of those that are no longer growing. And so it’s painful, but I think it’s healthy.”
