XRP Shifts to Niche Role as Ripple Partners Favor RLUSD Stablecoin

The role of XRP in Ripple's ecosystem is undergoing a significant shift, as the company's institutional partners increasingly favor its RLUSD stablecoin for settlement, leaving the original token to handle niche payment corridors. This transition is occurring against a backdrop of price weakness for XRP, even as large holders appear to be accumulating the asset.

Ripple closed ten major deals in the first half of 2026, and none used XRP as the settlement asset. According to reports, three of those deals never touched the XRP Ledger, while the seven that did settled in stablecoins, with XRP only used to pay a minimal network fee. The primary reason cited is XRP's price volatility, which makes it unsuitable for large institutional trades where value could fluctuate during settlement. In contrast, RLUSD is a dollar-pegged stablecoin fully backed by cash and U.S. Treasuries and regulated by the New York Department of Financial Services, providing the compliance certainty institutions require.

Major financial players have adopted RLUSD for various functions. BlackRock uses it to redeem its BUIDL tokenized fund, which holds over $500 million in assets. Deutsche Bank has integrated...