Is XRP a Stablecoin? Step-by-Step Guide to Understanding Its True Nature

Why is XRP often misunderstood as a stablecoin?

XRP is often misunderstood by the public as “close to a stablecoin” for two reasons:

First, it is commonly used in the payment field, which seems to have a similar purpose to stablecoins like USDT; second, Ripple has long emphasized “low volatility and high efficiency,” leading many to mistakenly believe that XRP would have a price stability similar to that of the US dollar.

But the fact is that XRP has experienced significant price fluctuations since its inception, far exceeding the risk tolerance range of stablecoins. In a bull market, XRP can soar over 10 times, while in a bear market, it may also decline by more than 80%.

The core differences between stablecoins and XRP

The reason stablecoins are “stable” is that they are backed by clear reserve assets and are regulated. For example, USDC is issued by Circle, and all assets are subject to auditing and regulation in the United States.

XRP is the native token issued by Ripple, with no corresponding reserves, and its total supply lock-up mechanism and market release mechanism depend on Ripple’s public and transparent commitments. This mechanism is more similar to Bitcoin and Ethereum, rather than any form of asset collateral.

Therefore, if you are a user who hopes that assets will “not rise or fall,” XRP cannot meet this demand.

Ripple’s stablecoin strategy: RLUSD

Although XRP itself is not a stablecoin, Ripple has started to venture into this space.

In mid-2025, Ripple announced the launch of RLUSD, a stablecoin pegged to the US dollar, which has been launched on the XRP Ledger and Ethereum networks, and has garnered significant market attention. The initial minting quantity exceeded 13 million coins, indicating that institutional funds have entered.

Ripple views RLUSD as an important part of expanding payment scenarios and enhancing the XRP application ecosystem. In this ecosystem, XRP plays the role of a “bridge coin”—used for the rapid transfer between various fiat currencies, stablecoins, and other crypto assets.

Latest market price and capital trends of XRP

Currently, the price of XRP is stable in the range of $3.48–3.55, reflecting the market’s recognition of Ripple’s strategy. In the past month, XRP has increased by over 60%, and daily trading volume is also continuously rising.

It is worth noting that several whale addresses have recently significantly increased their holdings of XRP, indicating that some institutions or large investors are optimistic about its medium to long-term performance.

However, some on-chain data shows that the growth rate of retail investors is beginning to slow down, indicating that there may be a certain pullback in the short term.

The indirect impact of the US stablecoin regulatory bill

The passage of the GENIUS Act provides a clear legal status and regulatory framework for stablecoins. Although XRP itself does not fall under the category of stablecoins, Ripple, as a new entrant in the field, is enjoying the benefits brought by regulatory clarity.

Ripple CEO stated that the bill paves the way for the development of RLUSD and could become a major competitor for compliant stablecoins in the United States. As the underlying chain asset, XRP will also benefit indirectly.

What risks should investors pay attention to?

The instability of XRP determines that it is not a “safe-haven” asset. If you are looking for a stablecoin, it is recommended to choose USDC or DAI. If you are more focused on technological growth or ecological opportunities, then XRP can be part of a medium to long-term allocation.

In addition, the historical lawsuit shadow between Ripple and the U.S. SEC has not completely dissipated, and investors should pay attention to regulatory changes and legal trends.

Conclusion: XRP’s role is more like a “bridge coin” rather than a stablecoin.

XRP is an efficient digital payment tool, not a stablecoin. As Ripple expands RLUSD and the global payment market, the ecological value of XRP is becoming apparent. As an investor, one should recognize its true role and allocate funds appropriately.