Jake Claver, Digital Ascension Group Managing Director, believes XRP will still maintain its relevance despite growing stablecoin adoption.
As more institutions enter the stablecoin market and Ripple’s own RLUSD gains traction, some XRP holders worry that XRP could lose its relevance in payments. However, Claver believes XRP still has an important role to play, and that its relevance could actually grow as stablecoins become more common.
The Stablecoin Race Heats Up
Notably, the race to dominate the stablecoin market has heated up. For instance, Ripple introduced RLUSD in December 2024, targeting business use and cross-border utility.
Since then, the token has gained momentum, reaching over $400 million in market cap at press time. Ripple has integrated RLUSD into its payment network and made it available on both Ethereum and the XRP Ledger, with plans to expand to other blockchains.
Other major institutions are also getting involved. Specifically, the Trump-inspired WLFI project has already launched the USD1 stablecoin, and tech giants like Amazon and Walmart are looking to follow suit. Interestingly, JPMorgan, Wells Fargo, Citibank, and Bank of America are also exploring a joint stablecoin project. PayPal has also launched its own stablecoin, PYUSD.
Why XRP Will Maintain Its Relevance
Amid the growing competition, Claver recently pushed back against the idea that these stablecoins may make XRP irrelevant. Notably, many people assume stablecoins will replace the need for XRP in global transfers, but that view overlooks a major issue: trust.
Specifically, banks and institutions likely won’t feel comfortable using stablecoins controlled by their competitors. They won’t want to rely on an asset issued and governed by a rival institution or corporation.
Jake Claver on X
Because of that hesitation, Claver believes the current system of holding funds in Nostro and Vostro accounts, a setup already tying up $27 trillion, could become even more bloated. Without a neutral asset to bridge different currencies, banks may need to lock up even more money to manage risk, pushing that number past $50 trillion.
Importantly, XRP solves this problem because it doesn’t belong to any one bank or company. It offers a neutral, decentralized bridge that everyone can use without handing over control.
While stablecoins like RLUSD may be convenient for certain payment flows, they can’t replace the unique position XRP holds. As Claver sees it, the more crowded and competitive the stablecoin market becomes, the more valuable a neutral option like XRP becomes.
Stablecoin Market Grows
Notably, the stablecoin market itself has experienced rapid growth in 2025. At press time, the total market value has crossed $256 billion, up from $204 billion at the start of the year. Stablecoins now make up almost 9% of the entire crypto market.
Their usage also continues to rise. In 2024, stablecoin transfers totaled over $27.6 trillion, surpassing the combined volumes of Visa and Mastercard. Individuals and businesses now use them for payments, remittances, and income strategies, not just trading.
The regulatory framework is also improving. The GENIUS Act, which just passed Senate voting, would require large stablecoins to hold U.S. dollar reserves or highly liquid assets and submit to annual audits. Analysts at Standard Chartered believe the stablecoin market could hit $2 trillion by 2028 as regulations clear up and adoption spreads.
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