Evernorth’s Chief Business Officer Sagar Shah has published an analysis arguing that RLUSD, the dollar-pegged stablecoin developed by Ripple, serves a fundamentally different function from XRP in digital asset infrastructure and cannot act as its replacement. The distinction centers on the difference between a stable value transfer instrument and a neutral routing asset, which Shah describes as two complementary layers required for tokenized financial markets to function efficiently. RLUSD currently holds a market capitalization of approximately 1.74 billion dollars with a circulating supply of over 1.74 billion tokens, according to CoinGecko data.

The Routing Problem in Fragmented Markets

Shah frames the argument through the lens of market fragmentation, comparing digital asset markets to a scenario where participants need to exchange assets across many different pairs without always having a direct counterparty. In traditional foreign exchange markets, the US dollar serves as the dominant intermediary currency through which most cross-currency trades are routed. In the digital asset ecosystem, XRP is positioned to perform an analogous function as a neutral bridging asset that enables cross-asset swaps through real-time settlement.

The key characteristic that enables XRP to serve this routing function, according to Shah, is its neutrality. Unlike stablecoins that are issued and managed by a specific entity with reserve-backing requirements and issuer-dependent operational guidelines, XRP operates as a decentralized asset without centralized issuer control over individual token movements. This neutrality makes XRP suitable for use cases that require an intermediary asset that is liquid, universally accessible, and not subject to the operational constraints of any single issuing party.

RLUSD’s Role as a Stable Settlement Layer

RLUSD, by contrast, maintains a constant dollar peg through reserve backing, which makes it well-suited for transactions that require dollar-denominated settlement or stable value storage. Shah acknowledges that RLUSD plays an important role in the broader ecosystem but emphasizes that its design as a pegged instrument limits its effectiveness as a cross-asset bridging tool. A stablecoin that is tethered to a single fiat currency becomes one component within a multi-asset trading system rather than the central routing mechanism through which diverse asset pairs are connected.

Market Context and the Stablecoin Landscape

The discussion comes at a time when the stablecoin sector is experiencing significant growth and competition. RLUSD has grown to over 1.74 billion dollars in market capitalization since its launch, establishing itself among the larger stablecoin offerings in the market. XRP, meanwhile, trades at approximately 1.38 dollars with a market capitalization of roughly 85 billion dollars, ranking as the fifth-largest cryptocurrency by market value according to CoinGecko. The size differential between the two assets reflects their different market functions, with XRP’s valuation driven by its utility across trading pairs and cross-border settlement, while RLUSD’s capitalization reflects demand for dollar-denominated digital stability.

Shah’s analysis aligns with a broader industry conversation about the roles that different asset types play in tokenized finance. As institutional adoption of blockchain-based settlement infrastructure accelerates, the distinction between routing assets and settlement assets may become increasingly relevant for market structure design. Evernorth’s position is that tokenized markets will require both types of assets working in tandem rather than one replacing the other.

Risks and Counterarguments

The argument that XRP occupies an irreplaceable niche as a routing asset is not universally accepted. Critics point out that other Layer 1 assets and automated market makers could potentially fulfill similar bridging functions without requiring a specific intermediary token. The rapid growth of cross-chain bridges and decentralized exchange aggregators has expanded the options available for multi-asset routing, potentially reducing the structural necessity of any single bridging asset. Additionally, Evernorth’s analysis comes from an entity with a vested interest in the XRP ecosystem, which warrants consideration when evaluating the neutrality of its conclusions. Regulatory developments around both stablecoins and utility tokens could also reshape the competitive dynamics between RLUSD and XRP in ways that are difficult to predict.

About XT Exchange

Founded in 2018, XT Exchange is a leading global digital asset trading platform, serving over 12 million registered users across more than 200 countries and regions, with an ecosystem reach exceeding 40 million. XT Exchange supports 1,300+ tokens and 1,300+ trading pairs, offering a wide range of trading options, including spot, margin, and futures, alongside a secure RWA (Real World Assets) marketplace. Guided by the vision “Xplore Crypto, Trade with Trust,” the platform strives to provide a secure, trusted, and intuitive trading experience.

Join the XT Exchange Community: X (Twitter) | Telegram | Facebook | LinkedIn | Medium | YouTube

Disclaimer: XT Exchange reserves the right, at its sole discretion, to modify, amend, or cancel this announcement at any time for any reason without prior notice.