WrathofKahneman (@WKahneman), a recognized voice in the crypto space, recently addressed the evolving conversation around Ripple’s upcoming stablecoin RLUSD and its relationship to XRP on the XRP Ledger (XRPL). In a post on X, he explained that while stablecoins like RLUSD may handle direct transfers more efficiently due to their price stability and guaranteed backing, they do not replace XRP’s essential role in the XRPL ecosystem. The discussions of #RLUSD and #XRP are too flat. Will stablecoins take some of #XRP 's use away? Maybe, for direct transfers. Stables are less volatile and guaranteed. And no, XRPL burn fees aren't significant, but XRP always plays a key role via autobridging. If you don't… — WrathofKahneman (@WKahneman) April 14, 2025 He emphasized that XRP is critical through the ledger’s built-in auto-bridging functionality. According to his explanation, XRP is automatically used when two tokens lack a direct trading pair. This allows the system to bridge transactions using XRP to maintain liquidity and ensure execution. Auto-bridging on the XRPL Auto-bridging is more than an interesting theoretical feature. It operates behind the scenes when pathfinding mechanisms determine that using XRP as an intermediary yields better exchange rates than direct trading. This means that even when users transact with RLUSD or other tokens, XRP can still serve as a liquidity intermediary without the user explicitly holding it. WrathofKahneman highlighted that while RLUSD may become a trusted, low-cost stablecoin issued by Ripple, XRP underpins broader system efficiency. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Community Perspectives and Functional Reality In response to the post, Daniel Keller, CEO of Eminence, challenged the notion that auto-bridging holds practical value, stating, “There is no need for auto bridging. I can onramp 1 to 1 if I want to.” He acknowledged the theoretical value of XRP bridging illiquid tokens but questioned its utility in practice, arguing that real-world usage remains limited unless the assets involved gain meaningful market traction. WrathofKahneman invited further clarification, and Keller elaborated by giving an example of two obscure tokens lacking a direct pair. In that case, XRP could bridge the gap, allowing each party to transact in their chosen asset. While he admitted this mechanism was “a genius idea,” he doubted its relevance until such tokens achieved significant value. He added that if markets existed for those pairs, there would be no need for XRP to step in. While experts have revealed that RLUSD will not limit XRP , Keller strongly argues for the asset’s reduced role in the ecosystem. However, the XRPL documentation confirms that auto-bridging is an active feature. Offers submitted to the decentralized exchange can utilize synthetic order books created through XRP. Suppose no sufficient direct path exists between two tokens. In that case, the system may convert one into XRP and then into the desired asset to optimize rates, making XRP’s position integral to the working of the XRPL . Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post Will RLUSD Take Some of XRP’s Use Away? Expert Clears the Air appeared first on Times Tabloid .
