Ripple CEO Brad Garlinghouse said on Nov. 3 that RLUSD competes with other stablecoins, not XRP, and that the two assets serve different purposes. He said Ripple prioritizes XRP when it suits customers’ needs and uses fiat currencies or RLUSD for other transactions.
On the XRP Ledger, accounts require XRP reserves, while holding RLUSD requires a trust line. RLUSD transfers also incur XRP transaction fees, but the amount sent does not have to be converted into XRP.
