Ripple’s launch of RLUSD has reignited debate about XRP’s role in cross-border payments. BitGo CEO Mike Belshe has pointed to the stablecoin as evidence that XRP has failed as a bridge currency. His comments came during the Digital Banking 2025 conference, hosted by American Banker.

Belshe Questions XRP’s Bridge Currency Role

Speaking at the conference, Belshe said, “It turns out that’s two conversions, right? And USD stablecoins are just better.” He referred to XRP’s reliance on a dual conversion process—fiat to XRP and XRP to fiat—as less efficient than using stablecoins.

Ripple launched RLUSD earlier this year as a dollar-backed stablecoin designed to support global settlements. Belshe said this launch was not just a new product, but an admission of XRP’s limitations. He added, “Ripple just launched a US-dollar-backed stablecoin. That says something.”

Ripple CTO David Schwartz countered the criticism. He stated that XRP remains core to Ripple’s strategy. He emphasized that RLUSD will work alongside XRP rather than replace it. This dual-token approach, according to Schwartz, supports a more flexible payment system.

RLUSD Expansion Fuels Market Debate

Institutions are picking momentum with RLUSD. The market cap of the stablecoin is drawing to a half a billion dollars. The RLUSD managed to gain acceptance in novel markets since the Dubai Financial Services Authority (DFSA) also approved Ripple.

Belshe was responded to by Crypto Eri, a figure individual in the community of Ripple, through X. She noted that the most significant implication of the comments by Belshe is that Ripple has to make XRP more useful to its clients using additional products and services. These involve spot ETFs, on-chain finance products such as XRPFi and more involvement of developers.

The inclusion of a stablecoin in international transactions is of a greater trend. Stablecoin frameworks are reviewed by central banks. The U.S. government also debates such rules as the GENIUS Act, which will standardize the regulatory of stablecoins.

Stablecoins Seen as More Efficient for Payments

Belshe noted that the simplicity of stablecoin transactions makes them ideal for international transfers. “It just works. It’s super simple. Peer-to-peer plus peer-to-intermediary,” he said. His view supports a shift toward dollar-backed tokens in cross-border finance.

Other financial institutions such as the Bank of America have shown an interest in stablecoins. Though Ripple has been selling XRP as the liquidity tool over the years, it seems that the market is beginning to agree with the idea that fiat-pegged tokens could be more compliant and efficient.

Bank of America @BankofAmerica is planning to launch its own stablecoin, according to CEO Brian Moynihan , who has stated that the bank is ready to enter the stablecoin market once regulatory frameworks are established. The bank is likely to launch a dollar-backed stablecoin,…

— MartyParty (@martypartymusic) June 11, 2025

The advantage of stablecoins is that they are less volatile and suitable to fit well in the fiat system. Market analysts believe that RLUSD and other types of stable coins can assist Ripple to scale faster in the regulated financial networks.

Ripple Maintains Support for XRP Amid Shifting Landscape

Although Belshe said so, Ripple has not recoiled from its initial idea of XRP. The company is still collaborating with banks and payment providers to leverage the XRP as a bridge across liquidity. Ripple has also confirmed that the decentralized use and low-priced transfer make XRP capable of corridors where there is no liquidity in fiat.

Nevertheless, as RLUSD turns into a trend with regulatory backing, Ripple might have to make both tokens coexist in its ecosystem. The observers of the industry are monitoring how Ripple copes with adjusting its strategy to meet the changing needs in the market.