BitGo CEO Says Ripple's Launch of RLUSD Signals XRP’s Shortcomings
Ripple’s decade-long ambition to establish XRP as the premier bridge currency is now under scrutiny, with BitGo CEO Mike Belshe calling the effort a failure. Speaking at the American Banker Digital Banking 2025 conference, Belshe pointed to Ripple’s recent introduction of its U.S. dollar-backed stablecoin, RLUSD, as evidence that XRP has not fulfilled its original purpose.
Belshe was blunt in his assessment, stating: “USD stablecoins are simply better.” He argued that Ripple’s pivot to RLUSD indicates the company is moving away from its earlier reliance on XRP as a core mechanism for cross-border transactions.
Ripple originally designed XRP to serve as a bridge between fiat currencies, streamlining global payments. However, Belshe believes that XRP’s two-step conversion model has hindered efficiency, making it less effective than modern stablecoins for international transfers.
Despite the criticism, Ripple maintains that XRP still plays a central role in its ecosystem. CTO David Schwartz responded by emphasizing that RLUSD is not a replacement, but a complement to XRP, and both will operate in tandem.
Ripple spokesperson Crypto Eri addressed Belshe’s remarks in a post on X (formerly Twitter), urging continued innovation in the XRP ecosystem. She highlighted ongoing efforts such as the push for spot ETFs, the development of XRPFi, new treasury solutions, and attracting fresh talent to the platform.
RLUSD has seen rapid growth, nearing a $500 million market cap, and recently received approval from the Dubai Financial Services Authority (DFSA)—a key step in its global rollout. This momentum underscores Belshe’s belief that stablecoins, rather than volatile tokens, may ultimately lead the future of cross-border finance.
