Ripple is Growing, but What About XRP?

XRP is said to be the North Star, but distrust is growing among Ripple's management.

Criticism arises over the economic role of XRP being overshadowed by RLUSD and institutional finance, leaving individual investors feeling neglected.

Garlinghouse clarifies, "XRP and RLUSD are not in competition."

[Block Media Reporter Lee Jeong-hwa] As Ripple Labs expands its stablecoin and institutional finance business, dissatisfaction among XRP individual investors is growing. While Ripple's corporate value is increasing, the results felt by XRP holders are limited.

Concerns have been raised that the rise of the stablecoin RLUSD could diminish XRP's role. Ripple CEO Brad Garlinghouse emphasized that XRP remains central to the company's strategy, but the debate surrounding the gap between corporate growth and token value continues.

Ripple is Growing, but XRP is Being Neglected... Individual Investors Push Back

According to Crypto Potato on the 7th (local time), the XRP community criticized Ripple for focusing on the stablecoin RLUSD and institutional finance, weakening XRP's economic role. This controversy began to spread during Ripple's annual event (SWELL) held in New York last month.

On the 1st, a community member posted a lengthy message on X, sparking controversy. "We have fought a war. We endured ten years of tightening policies, fear and uncertainty, and legal battles. We even paid Ripple's legal fees," they provocatively questioned, "Why should XRP's value drop because of RLUSD?"

To Brad Garlinghouse and David Schwartz: A message for your souls by the fireside. When you sit by the fireside of your homes in the evening, enveloped in the peace and warmth of your families, I look upon you and ask you to look into your souls. That sense of peace, that right to... --- Fiduciary Ledger '17 (@ledger_fid) November 1, 2026

The crux of the controversy is that Ripple Labs' growth does not necessarily align with the economic benefits for XRP investors. Ripple is expanding its business beyond payments into institutional finance areas such as corporate cash management, digital asset custody, and prime brokerage. Collaborations with major financial companies like Robinhood and BNY are also being strengthened.

However, it remains unclear whether this business expansion will lead to a direct increase in demand for XRP. If Ripple's corporate clients utilize RLUSD or fiat currencies, there is no necessity for them to hold or trade XRP.

Among individual investors, questions are being raised about whether Ripple, which grew based on XRP, is concentrating the benefits of business expansion on corporate and institutional clients.

The user who wrote the post (Fiduciary Ledger 17) publicly criticized CEO Brad Garlinghouse and Ripple's honorary CTO David Schwartz. They claimed that XRP investors have supported the XRP ecosystem with their assets.

They criticized, "Ripple has suppressed the economic and technological potential of XRP while growing RLUSD and other corporate businesses." They also argued that XRP should be recognized with a fair value of over $15 to $20.

Controversy Over the Role of XRP with the Expansion of RLUSD... Garlinghouse Says "Not a Competitive Relationship"

The core of the controversy is the dollar stablecoin RLUSD. RLUSD is issued separately from XRP by Ripple. RLUSD can be used for institutional payments and cash management based on price stability, while XRP is a digital asset with price volatility in the market.

Ripple explains that the two assets serve different functions. However, from the perspective of XRP investors, there may be concerns that as RLUSD expands, the practical use cases for XRP could diminish. XRP investors may feel that Ripple is playing with two coins.

Opinions diverge regarding the two coins. XRP community analyst (WrathofKahneman) posted on X on October 23 that RLUSD could be positive for XRP. They explained that as RLUSD liquidity increases, it would become easier to utilize XRP in the long term. However, they pointed out the lack of direct use cases for XRP as an issue.

Agreed! RLUSD isn't competing with XRP. It's competing with other stablecoins. Use case matters, and I want those use cases running on the XRPL. --- Brad Garlinghouse (@bgarlinghouse) November 3, 2026

CEO Garlinghouse responded to the post on the 4th, stating, "RLUSD does not compete with XRP. It competes with other stablecoins." He added, "Use cases are important. I want these use cases to operate on the XRPL."

Earlier, CEO Garlinghouse referred to XRP as the company's strategic 'North Star' during the Ripple SWELL event. He emphasized that Ripple is pursuing businesses that benefit XRP, while also acknowledging that XRP is not suitable for all financial transactions. Depending on the transaction purpose, fiat currencies or RLUSD may be more efficient.

This indicates that Ripple is focusing on building institutional financial infrastructure that connects various financial assets and services rather than a business model that solely uses XRP. This aspect is where XRP individual investors feel 'angry.' They perceive Ripple's growth as differing from the growth rate of XRP.

The mere fact that RLUSD is used on the XRPL does not guarantee an increase in XRP prices. Even if transactions on the XRPL increase, the extent to which pure demand for XRP rises needs to be verified separately.

Ultimately, this controversy leads to the question of how far Ripple Labs' interests align with those of XRP holders.

Ripple's strategy is to expand the opportunities for XRP's use in the institutional finance market. In contrast, some individual investors expect the results of corporate growth to also reflect in XRP demand and prices.

There is a possibility that Ripple's institutional-focused business expansion could benefit the XRP ecosystem in the long run. However, until it is confirmed how much actual XRP usage, liquidity, and transaction demand increase, the debate between corporate growth and token value is expected to continue.

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