Bill Morgan highlights the limitations of stablecoins like RLUSD and USDT
XRP has been praised as a fast, decentralized, neutral bridge currency for cross-border transfers
Increased adoption of Stablecoin could actually strengthen XRP’s utility as a reliable bridge asset
The debate over Stablecoins and Bridge Currencies is intensifying. Industry experts place emphasis on how different crypto assets fit their effectiveness as cross-border payments, financial management, and inflation hedges.
Bill Morgan recently highlighted in X Out that stubcoins like XRUSD and USDT have some limitations when compared to bridging currencies such as XRP.
Stablecoins have restrictions
He points out that Stablecoins rely on counterparties to maintain their value. Although not much has been mentioned, they are not finite. For example, the tether can be freely covered. They are linked to Fiat currencies such as USD, and inflation steadily loses their purchasing power.
Stubcoins like RLUSD and USDT have several drawbacks compared to bridging currencies like XRP.
1. There is a counter party.
2. No one mentions it, but they are not finite. For example, tethers are freely constructed.
3. They are tied to Fiats such as USD. That’s almost…– Bill Morgan (@belisarius2020) August 30, 2025
He points out that stubcoins are fixed in the country’s currency and are not universal in a global context that could be influenced by competing policies.
He went on to say that Stubcoin is an inferior Treasury ministry and is not a hedge against inflation. He emphasized the need for a neutral bridge currency without these restrictions.
XRP leads as bridge currency
Previously, Ripple CTO David Schwartz said, “All other assets are small because XRP uses it as a bridge for Ripple Payments.” He points out that stubcoins are useful as collateral or edge use cases, but XRP and other top-tier digital assets are generally superior for most purposes.
He added that the increased real-world financial use of XRPL will increase XRP’s utility and value.
Growing stability can boost XRP
Industry expert Jake Clever also points out that banks are unlikely to trust their competitors’ stubcoin, as trillions are held in Nostro and Vostro’s accounts. This strengthens its role as a neutral bridge currency.
RLUSD gains traction
Jack McDonald, senior vice president of Stablecoins at Ripple, emphasized that RLUSD is increasingly integrated into traditional finance, serving as collateral, enabling cross-border settlements, and now promoting IPO payments.
Morgan recently praised the RLUSD Stubcoin, highlighting the use of BNY melons for spare custody, in contrast to Tether’s lack of independent custodian.
RLUSD is also building a wave in the Stablecoin market, with market capitalization rising from $577 million to over $700 million.
Stablecoins continue to grow, but XRP speed and decentralization make them unparalleled with fast and efficient global transfers.
