Most XRP Holders Are WRONG About RLUSD — Here Is The Truth

Hey, it's Kamilah Stevenson, and around here we talk wealth. And let me ask you a question. If Ripple already built XRP to move value across borders instantly, then why did they turn around and build a stablecoin too? Think about that for a second. This is not a small company making decisions randomly. This is a company that spent over a decade fighting the SEC, surviving regulatory war, and building infrastructure that the biggest financial institutions in the world are now using. They do not build things by accident. So when they announced RLUSD, their own dollar-pegged stablecoin, a lot of people in this space had one of two reactions. Some got excited. They felt like more Ripple products, more ecosystem, more utility, which is great. But then also a lot of people got nervous, and honestly, I understand why, because the question Underneath the nervousness was a real one. Okay. And that is if RLUSD can move dollars across a blockchain instantly, what does XRP do that RLUSD cannot? And that question has been sitting in the comment sections and group chats and private conversations for months now. Some people are genuinely confused and some have already started second-guessing their position. And I also noticed that some people have mentioned that they started to sell their XRP for RLUSD. And this lets me know that those who heard the argument that RLUSD makes XRP less necessary started to believe it. So today we're going to settle this, not with a bunch of opinions, but with how the system really works. Because once you understand why Ripple built both of these assets and what each one was specifically designed to do, then the confusion can kind of disappear and you can keep your position because there are some people who are going to lose their position because they lack understanding. Now, I do want to mention this before I get started. Nothing in this video is financial advice. I am an educator sharing my perspective and my own research. Always do your own due diligence. All right. And comment in the chat if you have any RLUUSD. Have you invested in it at all? I would love to see if you're holding both XRP and RLUSD. Also like the video and subscribe if you have not already so that you do not miss the next video. Now I do want to walk you through what RLUSD actually is and why Ripple built it. So I'm going to start with the foundation because the entire debate around these two assets collapses when you understand what each of them were built to do. And I want to start to answer a question that most people forget to ask, which is what problem does a stablecoin solve? Not what is a stablecoin, but what problem does it solve? Because that answer will tell you everything about where it fits and where it does not fit. Now here's the problem a stablecoin solves: volatility. If you are a bank or a business or a financial institution trying to move value across a blockchain, you need to know that the value you send is the same value that arrives on the other end. You cannot send something worth $100 and have it arrive worth $87 3 minutes later because the market moved. That unpredictability makes the whole system unusable for serious institutional transactions. So a stablecoin comes in and says, here is a digital asset that always equals $1. It does not go up, it does not go down. It holds its value completely and it moves across a blockchain instantly. That stability is the entire point. It makes institutions comfortable. It makes the on-ramp predictable. It makes the entire entry point into the digital financial system something a compliance department can actually approve. That is what RLUSD is. 1 RLUSD equals $1. Always. No volatility, no surprises, just a digital representation of a dollar that moves at blockchain speed. Now, here is where people make the wrong turn. They hear and think, okay, so RLUSD is a digital dollar that moves instantly. They're doing the same thing. One of them must be replacing the other. But that conclusion only makes sense if you think moving value and representing value are the same job, and they are not. So let me show you what I mean with a Very simple example. Think about a receipt and a delivery truck. Okay? When you order something online, you get a receipt. That receipt confirms the value of what you purchased. It represents the transaction. It is proof that a dollar amount exists and belongs to you. But the receipt does not move your package. The receipt cannot drive to a warehouse, pick up your order, cross 3 state lines, and drop it at your door. That is the truck's job. ArielUSD is the receipt. It represents stable dollar value. It confirms what something is worth at the point of entry. It gives institutions the predictability they need to participate in the system. XRP is the truck. It moves value. It takes what is on one end of a transaction and gets it to the other end across currencies, across borders, across financial systems. That were never designed to talk to each other in seconds. One represents and one moves. Those are not competing functions, they are sequential functions. You need the receipt before the truck can do its job, and without the truck, the receipt just sits there. Ripple understood this from the beginning. They did not build RLSD despite XRP. They built RLSD because the system needs both a stable entry point and a powerful bridge. And this is a way to represent value and a way to move it. And the moment you start seeing them as two different parts of one system instead of two products competing for the same job, then you can understand why RLUSD does not threaten XRP. And it needs to make sense to you because you're making decisions based off your understanding. Now, here is the problem stablecoins alone cannot solve. So now that you understand what each asset was built for, let me show you the problem that stablecoins alone hit. When people think that they can replace the bridge entirely. Because this is definitely part of the argument that most people making the RlUSD kills XRP case have never worked through completely. And once you see it, you'll understand exactly why XRP is not optional in this system. So let me take you through how money really moves between countries right now. Not how most people think it works, but how it really works. When a bank in one country needs to send money to a bank in another country, they cannot just send it directly. Most banks do not have a direct relationship with every other bank in the world. So what happens is each bank maintains what is called pre-funded accounts at banks in other countries. They deposit money there in advance and it just sits. It's waiting in case a transaction needs to happen someday. Now, I want you to really picture what that looks like at scale. Imagine you own a restaurant and you decide to start delivering to other cities, But instead of hiring drivers, you come up with a different plan. Before you take a single order, you fly to every city that you might ever deliver to, and you rent a kitchen there. You stock it with ingredients, you pay rent on it every month, you hire a staff to maintain it, and then you wait. Most months, nothing happens. The kitchen just sits there fully stocked, costing you money, doing absolutely nothing, but you keep paying for it just in case someone in that city orders from you one day. That is exactly what banks do right now, except instead of kitchens, they are pre-funding accounts in dozens of countries with real money that's locked up, sitting idle, no generating returns, not being invested, just waiting. Now, conservative estimates pull the total amount of money trapped in these accounts globally at over $10 trillion. That is $10 trillion doing nothing. Just waiting to facilitate the possibility of a future transaction. That is the problem that XRP was built to eliminate. Instead of pre-funding accounts everywhere, you use XRP as the bridge asset in real time. The transaction happens, XRP steps in, value converts, settlement completes in seconds. No pre-funded kitchens, no trapped capital, no wasted resources. Now here is where the stablecoin argument hits a wall. Let's say a bank in Germany wants to send money to a bank in South Korea and someone says, just use RLUSD, send dollars digitally. Problem solved, right? But wait, the bank in South Korea does not need dollars. They need Korean won. Okay. So RLUSD does not convert itself. It's a dollar. It arrives as a dollar. It stays a dollar. You have not solved the conversion problem. You have just moved it to a different step in the process. So now you have a bank in South Korea sitting on RLUSD they cannot use until someone converts it into won for them. You have not eliminated the friction. You have just digitized it and moved it one step to the right. This is the wall. A stablecoin can represent value perfectly. It can move the value across a blockchain instantly., but it cannot convert that value into something the receiving party actually needs. That conversion, the real-time bridge between two completely different currencies and two completely different financial systems, requires a neutral liquid asset that both sides of the transaction can trust. And that asset has to be something that is not tied to any single currency. Not dollars, not euros, not yuan. Something neutral, something that exists specifically to facilitate the exchange between two currencies without carrying the political or economic weight of any one of them. Okay. That is XRP's job and nothing else in the current digital asset landscape was built to do that job at the institutional level with the regulatory standing that XRP now has. The stablecoin handles the entry, the bridge handles the conversion. You cannot have one without the other and expect the the system to really work. Okay. Now let me say this for a second because everything we talked about connectly directs to something I want you to think about. We are watching an entirely new financial infrastructure being assembled in real time. I mean, this is in real time. It's one of the greatest times to be alive. You got IRLUSD creating the on-ramps, XRP powering the bridge, institutions stepping in, banks getting cleared to custody crypto. The whole system coming together piece by piece, and we are literally watching this. You cannot make it up. And while that is happening, most people are focused entirely on prices every day, all day. Very few people are thinking about structure, about where their assets will live while this plays out, how they can capitalize on their gains, how they can keep more money. So here's what I want you to consider. If you do believe that this system is real and that these assets are going to appreciate as it matures, the account you hold them in is just as important as the asset themselves because gains mean nothing if a significant portion of them disappears to taxes the moment you realize them. So one of the ways I personally protect against that is through iTrustCapital. Through iTrustCapital, you can hold assets like XRP and other digital assets alongside gold and silver, backed by physical gold and silver, inside of a Roth IRA. And inside of a Roth IRA, your gains grow completely tax-free, not deferred, okay? Know the difference. I'm talking free. So as the system matures, your assets appreciate, and you keep whatever you built. Now, what I also appreciate about iTrust is the closed-loop custody model. So your assets are not floating around on the random exchanges, hoping that nothing goes wrong during volatility. Security, because I keep saying that there's a lot that goes wrong when you are in a volatile environment on the exchanges. So at iTrust Capital, they are held in a structure specifically designed for long-term security, and if passive income through yield becomes available on certain assets down the road, that infrastructure is already in place. And for business owners, they do have treasury accounts for LLCs and trusts you can position at the company level. Okay, so the link is in the description, and there is a $100 funding bonus when you open the account. Now, if you do not have a cold wallet also yet, make sure that you do at least have some of your crypto in a cold wallet. I have a Tangem link in the description if you want to make sure that you own your crypto keys. And I do believe in diversity, and I believe that there should be a different account for different purposes. It's time to get structured. It's time to get ready. I do not want you scrambling when this is all said and done. Now I do want to address one more thing because I think it's important. So stick with me here. You're going to need this because everything that we just covered, the pre-funded account problem, the conversion wall, why stablecoins alone cannot bridge currencies. That was the setup. This is the payoff. And I want to be very direct about something before we go further. Ripple did not build RLUSD and then hope that it would not compete with XRP. They built RLUSD knowing exactly how it would interact with XRP. Because they designed both of them, they understand the architecture better than anyone. And the architecture they designed has RielUSD and XRP working in sequence, not in competition. Let me show you exactly how that sequence plays out in a real transaction. A bank in Singapore needs to send a large payment to a financial institution in Nigeria. The Singapore bank holds dollars. The Nigerian institution needs naira. In the old system, the transaction crawls through correspondent banks across multiple time zones. Fees are going to be at every stop. It's going to take days to settle. And somewhere in that chain, there is pre-funded capital sitting idle, waiting to make it possible. Remember, now in the new system, here's what happens. The Singapore bank converts dollars into RLUSD instantly. It's stable, it's predictable. $1, remember, equals 1 RLUSD. So So the compliance team is very comfortable and the entry point is clean. Now that RLUSD then moves into XRP. XRP bridges across the ledger, 3 to 5 seconds. Remember, it's quick. There's no correspondent banks, no pre-funded accounts, no middleman taking cuts at every level. And on the other side, XRP converts into Nigerian naira and the receiving institution gets exactly what they need in the currency they actually use. Now look at what just happened in that transaction. Naira USD created the stable entry point. XRP did the conversion and the movement. The naira was the exit. It was 3 steps, each one doing a job that the other cannot do. If you remove one of them, the transaction breaks. And here's the part that I really want you to get. Every single time a transaction like that one flows through the system, XRP is being consumed, not held, not stored., but consumed in active use. Now research suggests that XRP turns over multiple times per day in these liquidity flows. The same XRP can facilitate transaction after transaction after transaction before it resets. I stated this before. Now think about what that means if this happens at scale. Right now, the volume flowing through this system is a fraction of what it will be when the regulatory framework is fully in place. Think about when the Clarity Act passes, when more banks get comfortable using the infrastructure the OCC just cleared them to use. And I did do a video on that. Go back and watch it. And also when tokenization starts moving real world assets across these rails at institutional scale. Every new corridor that opens up needs XRP in the bridge position. Every new stablecoin that gets issued creates more on-ramp volume that flows through XRP, and every new institution that steps in pulls more XRP into operational use and out of the tradable supply sitting on exchanges. So more RLUSD volume does not reduce XRP demand. More RLUSD volume is more transactions feeding the bridge, which is more XRP being pulled into active use which is less XRP sitting available on the open market. And here's the simple truth about what happens when demand grows and available supply shrinks. The market does not adjust slowly. In that instance, it adjusts all at once. And by the time the majority of people understand what's been building underneath the surface, the price has already moved to reflect it. So the next time somebody tells you that RLUSD is bad for XRP or making the price go down, or I should sell my XRP for RLUSD. I want you to remember the Singapore to Nigeria transaction. I want you to remember the receipt and the truck. I want you to remember that Ripple built both of these assets on purpose, and that purpose was never competition. It was completion. IRLUSD completes the entry. XRP completes the bridge. Together they complete the system for now. We don't know what they'll do in the future, but listen, they're moving very strategically. Okay. And the people who understand that relationship right now, while most of the world is still arguing about whether they compete or not, they are the ones who are going to look back on this moment and understand exactly why they held. And I'm educating you because there's a lot of people that are getting a lot of reasons and excuses out there that's making them capitulate their positions. And, uh, I just want you to get educated because it helps your conviction. Now, understanding all of what we talked about is very important, but I have watched enough people who go through this journey Um, to know that understanding alone doesn't always translate into the right decisions when the market gets loud and emotional and uncertain. You know, those are just nervous system issues that people have to deal with. And there is a gap between knowing what you own and having the actual structure and discipline to hold it through everything that the market is gonna throw at you between now and the moment that this plays out. Okay. So there's a lot happening in between every single day. And I believe that that's the gap where most people lose. So inside my coaching program and community, that's what we're working on is closing the gap. Not just what assets to hold, we do talk about that, but how to hold them. So we think about position sizing, how to structure your holdings across different account types, how to build the mental framework that keeps you steady when everything around you is a little shaky. Okay. So the link to that is in the description if you want to explore that. And if you need something specific to your situation, I do have my one-on-one clarity calls that's open. Um, the link is in the description also for that. And, uh, before you go, I do want to leave you with one question and I want to know how you're thinking about it. So drop it in the comments. All right. Do you have a better understanding now of the difference between RLUSD and XRP or just stablecoins in general? And I do want to see how many people came in with that belief and whether this video shifted it. Okay. And if you're still not sure about something, drop it in the comments too, because those questions help everybody in the community who's sitting with the same thing and not saying it.. And I do look at the comments and I try to make videos based off of some of that confusion. And if this video did give you any clarity, just go ahead and give it a like. It genuinely helps this channel reach more people who need to hear this conversation. Also subscribe if you haven't already. Some people watch the videos and never subscribe, so take a moment to do that and share it with someone in your circle who has been confused about this same topic because they need to see the full picture before all the noise convinces them into something that is not true. All right. And last thing, I genuinely appreciate you. And as always, I want you to stay wise, stay wealthy, and I'll see you in the next video.