Ripple CEO says XRP enables currency transfers without using US dollar

Ripple CEO Brad Garlinghouse has outlined how XRP can simplify cross-border payments by acting as a neutral bridge between currency pairs, removing the need to route transactions through the US dollar. Speaking on Bloomberg TV, Garlinghouse emphasized the advantages of XRP’s efficiency for international money transfers, especially in an environment where most stablecoins remain closely tied to the dollar.

XRP as a Bridge Between Currencies

Garlinghouse explained that over 90% of stablecoins are pegged to the US dollar, but this reliance does not always yield the most efficient method for global payments involving diverse currencies. Rather than facilitating transfers through dollar-converted stablecoins, Garlinghouse suggested that XRP’s neutral status allows for more direct, lower-cost transactions between currency pairs.

He stated that being “US dollar dominated, denominated, doesn’t actually solve that across different corridors,” and that XRP continues to serve as a bridge asset connecting foreign exchange transactions without first converting to US dollars.

He added that financial institutions can potentially use XRP as an intermediary, streamlining transactions that historically would pass through the US dollar before reaching the recipient’s currency.

Ripple’s Strategy for Global Payments

Garlinghouse illustrated this point with the example of transferring funds from Australian dollars to Philippine pesos. In traditional systems, such payments usually undergo conversion to the US dollar before reaching the final currency. He argued that using a single, neutral asset like XRP can offer a simpler, more scalable alternative, with reduced costs for participants.

Garlinghouse described XRP’s low fees and scalability as key reasons it remains attractive for payment corridors connecting various currencies.

He noted, “having a neutral bridge asset that’s very, very, very low cost and very scalable is something we think will continue to be appealing to different corridors, different currency pairs.”

As central banks and financial institutions seek faster, cheaper ways to move money worldwide, Ripple continues to position XRP as a solution for overcoming the inefficiencies of dollar-centric transactions.

Stablecoin Competition and Market Impact

Some members of the XRP community have raised concerns about Ripple’s plans for its RLUSD stablecoin, questioning whether the introduction of a dollar-pegged asset undermines XRP’s role as a bridge currency. One commenter suggested that RLUSD could duplicate or compete with XRP’s functionality on the XRP Ledger.

Others point out that RLUSD and XRP fulfill distinct functions: RLUSD provides dollar stability, while XRP facilitates conversions between non-dollar currencies. Their coexistence does not mean one must supplant the other.

Meanwhile, several commentators stressed that transactional utility by itself may not guarantee higher prices for XRP. Additional liquidity, they argued, means the same tokens can be reused for multiple transfers, so a jump in payment volume does not automatically create more market demand for the asset itself.

XRP’s long-term value consequently depends on a variety of factors, including adoption, investor sentiment, and overall demand, rather than its function as a bridge asset alone.