RLUSD vs XRP, what is the difference?

RLUSD vs XRP compares two very different assets that share a network and a company name. RLUSD, or Ripple USD, is a stablecoin meant to stay worth one dollar. XRP is the built-in currency of the XRP Ledger, and its value is set by the open market. The basics of RLUSD are in what is RLUSD.

Is RLUSD the same as XRP?

No. Ripple's own product page draws the line clearly. XRP is the native, decentralized coin of the XRP Ledger, and its price moves freely. RLUSD is backed one for one by dollar deposits, short-term US Treasuries, government money market funds and other cash equivalents, held in segregated accounts and checked monthly by an independent accounting firm.

The supply works differently too. XRPL.org says all XRP already exists, and no more than the original 100 billion can ever be created. RLUSD is minted when customers deposit dollars with the issuer and destroyed when they redeem, so its supply follows demand.

Does RLUSD use XRP?

Only on the XRP Ledger. There, every transaction must pay a small fee in XRP, currently a minimum of 10 drops (a drop is a millionth of an XRP), and that XRP is destroyed rather than paid to anyone. An RLUSD payment on the ledger therefore burns a tiny amount of XRP.

Holding RLUSD on the ledger also ties up some XRP. Tokens sit on trust lines, and each trust line counts toward an account's owner reserve. As of November 2026, XRPL.org lists a base reserve of 1 XRP per account plus 0.2 XRP per owned object, such as a trust line.

RLUSD also runs on Ethereum and other networks. Ripple lists seven in total, including Base and Optimism. On those chains, fees are paid in that chain's own coin, and XRP plays no part.

Can RLUSD and XRP be frozen?

RLUSD can be. Speaking in April 2026, Ripple's David Schwartz said Ripple can freeze RLUSD and claw it back, and that US courts can direct it to do so, crypto.news reported. On the XRP Ledger, clawback is an issuer setting that must be switched on before any trust lines exist.

XRP is different. The XRPL docs state that XRP is not a token and cannot be clawed back. That does not mean XRP held on an exchange is out of reach of the exchange, as explained in can crypto be frozen.

How are RLUSD and XRP used?

RLUSD is built for payments, settlement and trading where a steady dollar value matters. It can be redeemed at par through the issuer, although direct minting and redemption depend on jurisdiction, and most people get it through exchanges.

XRP pays every transaction fee on its ledger, and XRPL.org describes uses as a bridge currency for cross-border payments, for small payments and as trading collateral. Schwartz described RLUSD as able to fill bridge roles too, but as an asset still tied to Ripple and the US legal system. For a comparison with another dollar coin, see USDC vs RLUSD. Neither token is a bank deposit, and XRP's price can fall sharply.