David Schwartz, CTO Emeritus at Ripple, highlighted three advantages that XRP holds over stablecoins. He put forward the comments while explaining how both assets serve different roles in financial systems. At the same time, he pointed out that XRP is not in competition with stablecoins. However, he identified a gap between the two. According to David Schwartz, stablecoins provide price stability, while XRP focuses on liquidity and cross-border movement.
David Schwartz Points Out a Currency Flexibility Gap
According to an X post, David Schwartz said one of the main limitations of stablecoins is their dependence on a single fiat currency. A U.S. dollar stablecoin only tracks the value of the dollar. As a result, it may not fit every international transaction requirement.
He explained that global payments often involve multiple currencies. In such cases, a comparable stablecoin may not exist for every currency pair. As a result, it may not match every global transaction requirement.
By contrast, Schwartz stated that XRP operates as a neutral bridge asset. It is not tied to any single fiat system. Therefore, it can simplify cross-currency transfers without requiring multiple tokens. This structure enables XRP to be used in cross-border settlements where stablecoin coverage may be limited. This move comes as XRP is being studied for remittance payments between Japan and South Korea.
Control Risks and Transaction Reversals
David Schwartz also cited control mechanisms embedded in stablecoins. He indicated that issuers may freeze or reverse a transaction under certain conditions. Such activities are usually in accordance with the law or regulations.
He noted that regulated entities must comply with court orders. As a result, user funds in stablecoins may be subject to external control. This introduces counterparty risk in some use cases.
In comparison, Schwartz stated that XRP transactions do not include the same level of centralized control. He described XRP as more resistant to censorship in cross-border transfers. David Schwartz further clarified that stablecoins are built to hold a fixed value. They do not offer price appreciation. This makes them suitable for scenarios where stability is the priority.
However, he said this format limits their utility in other contexts. An illustration of this is that long-term custody or settlements can use assets that have growth potential. Schwartz believes that digital currencies like XRP can appreciate.
Ripple Expands Treasury Capabilities With XRP and RLUSD
This debate on David Schwartz occurs as Ripple expands its enterprise offerings. Ripple has incorporated XRP and RLUSD in the treasury management system. This solution allows financial officers to handle all fiat and digital assets in one interface.
Ripple Treasury has now added digital asset accounts and integrated liquidity solutions. It also enables connection to conventional banking. These capabilities enable the user to manage payments and balances across both the crypto and fiat worlds.
Separately, Ripple has joined the SWIFT Certified Partner Program. This integration enables direct interaction with SWIFT infrastructure. It also introduces blockchain-linked capabilities into traditional treasury workflows.