Hussain Zangana, aka Vet, an $XRP Ledger validator, has explained why $XRP differs from stablecoins such as Ripple USD ($RLUSD). He argued that while holding $RLUSD is optional, $XRP is necessary to use the $XRP Ledger.
In an X post, Vet explained the differences between the two assets, including their roles, issuers, and level of control.
“$RLUSD is optional. $XRP isn’t,” he stated.
$XRP Is Needed to Use the XRPL
According to Vet, $XRP plays a central role on the $XRP Ledger because every account must hold a minimum amount of $XRP to remain active. The network also charges transaction fees in $XRP, meaning users need the asset to carry out transactions.
$RLUSD works differently. Since Ripple issues the dollar-backed stablecoin, users must first set up a trust line before they can hold or transact with it on the XRPL.
Vet also pointed to differences in how the two assets are controlled. Ripple issues $RLUSD and must follow U.S. regulations. This means the company can freeze $RLUSD tokens when required.
$XRP, on the other hand, has no central issuer that can freeze users’ holdings. Vet described it as a neutral asset with no single jurisdiction controlling it and classified it as a commodity.
$XRP Has a Special Role in XRPL’s DEX
Vet also explained that $XRP plays a unique role in the $XRP Ledger’s decentralized exchange (DEX), particularly when users swap different currencies. The DEX automatically checks whether using $XRP as an intermediary can offer a better exchange rate.
For example, when someone swaps USD for EUR, the system checks whether routing the trade through $XRP would give them a better deal.
According to Vet, $XRP is the only asset that receives this automatic treatment by default. This also makes $XRP useful to market makers who provide liquidity across different trading pairs. They can use $XRP to connect different markets without depending on a particular stablecoin issuer.
Vet added that market makers mainly need to consider $XRP’s market price rather than worry about the financial risks of a token issuer.
$RLUSD and $XRP Have Different Uses
Vet also explained that $XRP and $RLUSD serve different purposes because their prices behave differently. $RLUSD maintains a $1 value, making it useful for payments, payroll, invoices, and business transactions where price stability matters.
$XRP, however, has a floating market price that changes with supply and demand. It is not backed by dollar reserves or tied to a fixed value.
This makes $XRP more suitable for trading and investment, while its structure also allows users to transact without relying on a central issuer.
His comments suggest that $XRP and $RLUSD are not competing for the same purpose. Instead, they serve different needs within the XRPL ecosystem.
$RLUSD Growth Could Also Benefit $XRP
Meanwhile, Vet argued that the $XRP Ledger does not need users to choose between $XRP and stablecoins for the network to grow. More stablecoin transactions and activity involving other assets increase XRPL usage while $XRP continues to serve as its native asset and liquidity bridge.
He believes that as the network becomes more successful, $XRP could also gain wider acceptance.
In this setup, $RLUSD provides payment price stability, while $XRP handles transaction fees, account reserves, and liquidity transfers. Both assets can therefore benefit from increased activity on the $XRP Ledger without serving the same purpose.
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