Mike Belshe, CEO of BitGo, took center stage at the Digital Banking 2025 conference hosted by American Banker, delivering a candid assessment of Ripple’s longstanding ambitions. According to Belshe, Ripple’s vision of positioning XRP as a universal bridge currency has hit a wall. The release of Ripple’s new US-dollar stablecoin, dubbed RLUSD, is the clearest signal yet that XRP’s original mission has been abandoned.
Ripple’s New Direction
Ripple’s introduction of RLUSD marks a significant pivot for the company, which has long touted XRP as the keystone of its cross-border payment solutions. Belshe didn’t mince words when describing the situation: “Ripple’s issuance of RLUSD is an admission that XRP didn’t achieve its goal.” For years, XRP was championed as a solution to the inefficiencies of international remittances, promising faster and cheaper transactions. But the launch of a stablecoin suggests that the market’s appetite for XRP might not be as strong as once believed.
According to Belshe, the stablecoin’s creation underscores a stark reality: the industry’s shift towards stablecoins as preferred vehicles for digital transactions. “It’s not just about speed and cost anymore,” he remarked. “Stability is king, and RLUSD is Ripple’s tacit acknowledgment of that.”
A Ripple Effect on the Market?
The introduction of RLUSD raises intriguing questions about Ripple’s future strategy. While stablecoins like RLUSD offer the allure of minimized volatility, which is crucial for large-scale adoption in financial systems, they don’t necessarily play the same disruptive role that Ripple envisioned for XRP. Some experts argue this could be a strategic recalibration rather than a retreat. “Ripple might be hedging its bets,” noted cryptocurrency analyst Jenna Lim. “Stablecoins are gaining traction, and Ripple could be positioning itself to capitalize on that trend.”
Yet, the implications for XRP are uncertain. Its role—and relevance—in Ripple’s ecosystem now seems murky. Critics like Belshe suggest that this move might signal a broader industry trend, where stablecoins could eclipse traditional cryptocurrencies for specific use cases. “We might be witnessing a paradigm shift,” Belshe asserted, “where the utility of a currency hinges more on its stability than its novelty.” This shift is further highlighted by recent market dynamics, as seen in XRP’s gains amidst geopolitical tensions.
Historical Context and Market Trends
Ripple’s journey with XRP has been nothing short of turbulent. Initially launched in 2012, XRP was heralded as a groundbreaking tool for financial institutions, promising seamless cross-border transactions. Despite these ambitions, the token has faced regulatory hurdles and market skepticism. The SEC’s lawsuit against Ripple, which began in 2020, remains a significant shadow over XRP’s potential, drawing attention to compliance risks that may have stifled its adoption.
Moreover, the broader cryptocurrency market has evolved. The rise of decentralized finance (DeFi) and increased institutional interest in blockchain technology have shifted priorities. Stablecoins, with their promise of pegged value and reduced volatility, have become increasingly attractive to both consumers and businesses. This trend is also evident in the aftermath of security breaches, such as the Nobitex hack affecting Ripple networks.
Looking Ahead
Ripple’s pivot to RLUSD may open new doors, but it also leaves questions about the future of XRP. Will Ripple continue to support its original cryptocurrency, or will RLUSD become the company’s flagship offering? The answer could redefine Ripple’s place in the financial world.
As the crypto landscape continues to evolve, Ripple’s strategy will likely be scrutinized by industry watchers and investors alike. The move to a stablecoin-centric model could signal a broader industry trend, where stability and compliance overshadow innovation and disruption.
For now, the debut of RLUSD adds a new chapter to Ripple’s story—one that could either herald a new era of success or further complicate its ambitions. The coming months will be critical in determining whether this shift represents a course correction or a profound change in Ripple’s trajectory.
Source
This article is based on: XRP Failed Because Ripple Created RLUSD, Claims BitGo CEO
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
