A new debate among XRP Ledger (XRPL) community figures has reignited discussion over the relationship between stablecoins, payments, and XRP, as the network continues to expand its presence in decentralized finance (DeFi), tokenization, and cross-border payments.
The discussion began after XRPL researcher Eri highlighted Ripple’s use of major stablecoins, including Tether (USDT) and USD Coin (USDC), in supporting On-Demand Liquidity (ODL) payment flows. While stablecoins are increasingly being used in payment infrastructure, Eri argued that liquidity on XRPL remains a key component of the system.
Jake on🥪Stablecoin Sandwich
He’s correct (on these 2 points😇🩷)
1. @Ripple has used Tether & USDC Stablecoins to bridge ODL. Cheaper | Faster on XRPL DEX💯🎯. It’s why @Vet_X0 always talks more quality assets & @XRPLF lead @MollinBrett talks LIQUIDITY.
2. XRP = Many use cases… pic.twitter.com/RRPiQmIosa— 🌸Eri ~ Carpe Diem (@sentosumosaba) June 18, 2026
The researcher also emphasized that XRP’s utility extends beyond payments. According to Eri, the digital asset can serve as collateral in financial applications and play a larger role in DeFi products being developed on the XRP Ledger.
Why do XRPL builders see XRP and stablecoins as complementary?
The debate gained further attention after Vet, an XRPL dUNL validator and contributor to the XRPL Foundation, shared his view that XRP and stablecoins are designed to work together rather than compete.
Vet explained that a so-called “stablecoin sandwich” payment functions similarly to a standard payment flow rather than a cross-currency transaction. In such a model, currency conversions can occur at both the sending and receiving ends without requiring swaps on the XRPL decentralized exchange.
Even so, he stressed that reliable payment systems still depend on high-quality assets and stablecoins to provide liquidity and support efficient transactions.
Another debate by David Schwartz emphasized how crypto staking rewards should be taxed if the XRP Ledger ever introduces a native staking system.
XRP’s role as a bridge asset remains important
While stablecoins are becoming more prominent across blockchain networks, Vet argued that XRPL will still require a bridge asset as more issued currencies enter the ecosystem.
Without a common bridge asset, liquidity could become fragmented across numerous trading pairs, making transactions less efficient. According to Vet, XRP is well positioned to fill that role when bridging between different assets on XRPL provides the most efficient route.
He also noted that bridge assets on decentralized networks should ideally remain neutral and not depend on a single issuer.
Stablecoin growth expands XRPL ecosystem
The debate comes as Ripple continues expanding its stablecoin strategy. The company’s RLUSD stablecoin has recently extended its reach across 40 blockchain networks, increasing access to payments, institutional liquidity, and tokenized assets.
At the same time, XRPL’s utility is expanding beyond payments into tokenization, lending, and DeFi applications. Recent proposals to enhance the network’s automated market maker (AMM) with StableSwap and concentrated liquidity features are expected to improve pricing efficiency for stablecoins and real-world assets.
While opinions remain divided on whether stablecoins will reduce or increase demand for XRP, the latest discussion highlights a growing view among XRPL developers that both serve distinct functions within the network’s evolving financial ecosystem.
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