XRP’s Expanding Utility: From Cross-Border Payments to a Multi-Functional Digital Asset

Well-known XRP community advocate Eri recently shared insights on X (formerly Twitter), emphasizing that XRP's role has significantly evolved beyond its original purpose. Once solely recognized for enabling fast and affordable cross-border transactions, XRP is now transitioning into a versatile, multi-purpose digital asset.

Eri noted a noticeable shift within the XRP community, stating that many prominent influencers are moving away from focusing exclusively on Ripple’s initiatives. According to her, there’s growing awareness among XRP holders about the token’s broader utility, driven by emerging technologies, stablecoins, and Ethereum Virtual Machine (EVM) compatibility. Her comments sparked debate, with some community members disputing her perspective, but others welcomed the updated viewpoint.

XRP’s Use Case Is Evolving

Eri reaffirmed that XRP’s functionality has grown far beyond its initial payment-driven use. While XRP was once largely viewed as a tool for low-cost international remittances, its integration with modern blockchain developments has opened up new possibilities.

Here are the three key areas Eri believes highlight XRP's transformation:

1. wXRP as a Gas Token on EVM-Compatible Sidechains

Eri pointed out that Wrapped XRP (wXRP) is now being utilized as a gas token on Ethereum-compatible sidechains. This mirrors how ETH is used to pay transaction fees on Ethereum. wXRP, which maintains parity with native XRP, enables seamless interaction with decentralized applications (dApps) across EVM ecosystems.

This integration allows XRP holders to tap into the broader DeFi space, boosting the token’s utility across multiple blockchain environments.

2. Institutional Growth Through RLUSD Stablecoin

Another major development is the introduction of RLUSD (Ripple USD), a stablecoin that supports institutional and DeFi adoption. Eri explained that RLUSD offers a regulated, stable medium for cross-border value transfers via Ripple’s payment network.

Because these transactions occur on the XRP Ledger (XRPL), XRP is still required to pay network fees. As RLUSD gains traction among institutions, this could indirectly increase demand for XRP due to its role in powering transaction settlements on the XRPL.

3. Native Yield Opportunities on the XRPL

Lastly, Eri highlighted a new way XRP holders can earn passive income directly from their holdings. She pointed to the upcoming launch of MoreMarkets, a DeFi platform designed to enable yield generation on idle XRP, without needing to bridge tokens to another blockchain.

This means users can keep their XRP on the XRPL and still benefit from staking-like rewards, marking a significant step in expanding the token’s financial utility.

The Future of XRP: A Multi-Dimensional Digital Asset

Eri concluded that XRP’s journey from a simple payment token to a multi-functional digital asset is being shaped by stablecoins like RLUSD, enhanced interoperability via EVM, and new DeFi protocols like MoreMarkets. With its growing utility and broader ecosystem use, XRP is positioning itself as more than just a remittance tool, it’s becoming a key player in the next phase of blockchain innovation.