RLUSD (stablecoin):

It is a digital version of the US dollar, indexed 1:1 to the real dollar.

You use it like digital cash for transactions, but it remains pegged to the value of the dollar.

It's great for sending or receiving money if both the sender and receiver want to deal in dollars.

XRP (bridge coin):

XRP was designed to connect different currencies (like RLUSD, euros, yen, etc.) and move value quickly and cheaply across borders.

It is not pegged to any currency, it has its own market value.

You use it when you need to send money between currencies or between systems (e.g. RLUSD in one place, euros in another).

But wait, why should I use XRP if there will be RLUSD?

If you are using a currency (like RLUSD → RLUSD), XRP is not needed.

But if you are moving between different currencies or systems, XRP is the bridge that makes everything work seamlessly and cheaply.

Think of RLUSD as digital cash for dollars, and XRP as the global courier that connects everyone. They work together in many cases, but they also serve different purposes depending on the transaction.

If you are still confused, I will give you an easy example.

In the real world, there are over 180 currencies (like dollars, euros, yen). Banks need to hold large amounts of cash in all currencies to send money around the world. It's expensive and slow.

XRP acts as a bridge currency.

If someone in the US wants to send $1 million to Japan, instead of needing dollars and yen, they would convert $1 million into XRP.

XRP is sent to Japan and converted into yen there.

This is faster and cheaper because banks only need XRP as a bridge, not all the currencies in the world.

RLUSD is like a digital version of the dollar.

It is backed 1:1, meaning each RLUSD is backed by one real dollar in a bank.

This makes it safe and reliable.

You can use RLUSD in the digital world (on the XRP Ledger or Ethereum) instead of cash.

Think of XRP as the super-fast delivery truck and RLUSD as the digital cash it securely carries. Together, they make global money transfers easier, cheaper, and much faster. Instead of 6,000 different currency combinations (dollars to yen, euros to pesos, etc.), banks only need XRP as a bridge. RLUSD also makes the dollar ready for this digital system, so people can easily use it online.

Now, what will happen when RLUSD launches?

The launch of RLUSD may indirectly strengthen the XRP market, but the magnitude of the impact will depend on how quickly RLUSD gains adoption and integrates into real-world financial systems.

Expect some short-term excitement, but focus on long-term utility for sustainable effects on XRP.