Ripple SVP Confirms: “XRP Is the Native Gas Token for RLUSD”

XRP could see significant gains as RLUSD usage grows on the XRP Ledger. Crypto enthusiast and XRP advocate Diana (@InvestWithD) shared a video from XRP Community Day where Jack McDonald, Ripple’s SVP of Stablecoins, explained how XRP powers RLUSD transactions.

Her comments highlight a direct connection between stablecoin activity and XRP utility, which could influence market behavior.

XRP as the Native Gas Token

McDonald confirmed that “every time you mint RLUSD or do something with RLUSD on the XRP ledger, XRP is used as that native gas token.” This means all RLUSD transactions require XRP to process. Whether for payments, transfers, or treasury flows, XRP facilitates each operation on the XRPL.

This system ensures that as RLUSD adoption grows, so does XRP usage. McDonald emphasized that “the more activity, the more utility for RLUSD on the XRPL, it’s a net positive for XRP.” Every interaction with RLUSD increases demand for XRP, reinforcing its role as an essential utility token within the Ripple ecosystem.

Stablecoin Growth Drives XRP Utility

RLUSD is designed to run natively on the XRP Ledger. The stablecoin relies exclusively on XRP for transaction fees. This structure creates consistent demand for XRP whenever RLUSD activity rises. All stablecoin transactions consume XRP, directly tying stablecoin growth to XRP usage.

As McDonald noted, the interaction with XRP happens daily. He stated, “We interact with XRP and the ledger every single day.” This routine engagement shows the recurring demand for XRP and the token’s integral role in enabling stablecoin operations.

Positive XRP Price Dynamics

The connection between RLUSD and XRP has clear market implications. Increased RLUSD activity creates higher demand for XRP, strengthen its utility and value. More transactions require more XRP, reinforcing its position as the ledger’s native gas token. This direct usage is likely to support XRP’s price as adoption grows.

McDonald also highlighted that Ripple continues to offer XRP to its payments customers. By providing an alternative for stablecoin users, Ripple ensures ongoing XRP engagement. This approach reinforces the token’s utility while expanding use cases across payments and treasury management.

Strategic Importance for Ripple

XRP’s role as the gas token for RLUSD adds strategic value to Ripple’s ecosystem. Every increase in RLUSD activity translates into higher XRP engagement. This positions XRP as both a utility token and a stable mechanism for transaction processing.

Ripple CEO Brad Garlinghouse recently called XRP the North Star for Ripple. This design that drives demand to XRP reinforces that stance and strengthens the asset’s importance in the ecosystem. As Ripple expands RLUSD adoption, XRP will see increased demand, further solidifying its position in the market.

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 advised to conduct thorough 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.

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