Watch out for this!!!
The poor performance of XRP's price on Friday reflects growing concerns among investors about Ripple's ability to compete in the global stablecoin market, especially after JPMorgan led a group of four traditional banks, launching the idea of a new native Wall Street digital dollar project.
On Friday, the Wall Street Journal reported that the largest banks in the United States, JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, are exploring the launch of a stablecoin jointly backed by USD.
The plan, still in the conceptual stage, involves using blockchain infrastructure providers like Early Warning Services and The Clearing House to enhance payment speed and reduce cross-border friction.
This could allow the big players on Wall Street to invade the market share of existing stablecoins launched by native cryptocurrency companies, including Ripple's RLUSD, Circle's USDC, and Tether (USDT).
Ripple launched RLUSD in March 2025 as a stablecoin in U.S. dollars regulated on both XRP Ledger and Ethereum.
Backed 1:1 by reserves in U.S. dollars and short-term Treasury bonds, RLUSD serves as the backbone of payments and liquidity for RippleNet and its suite of on-demand liquidity (ODL) products for institutional players.
At the time of publication on May 23, Ripple's native stablecoin now has a circulating capital of $310 million, according to the latest RLUSD data from Coingecko.
However, the emergence of a "Wall Street stablecoin" backed by the four largest U.S. banks threatens to diminish the growing market dominance of RLUSD, particularly among institutional players.