Ripple’s Schwartz Explains RLUSD Use Case and Control Features: What You Need to Know

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<a href="https://jpygbp.com/xrp-usd/">Ripple</a>’s Schwartz explains RLUSD use case and control features

David Schwartz, former Chief Technology Officer at Ripple, explained that RLUSD could be used to facilitate some payments, but it doesn’t offer the same impartiality as XRP.

Summary

  • David Schwartz said RLUSD supports settlement, but Ripple retains freeze and clawback control over tokens.
  • RLUSD serves Ripple Payments clients seeking stable settlement for cross-border transfers and treasury operations globally.
  • Ripple said XRP remains the neutral bridge asset, while RLUSD focuses on payment stability.

He said this when asked if RLUSD could act as a neutral intermediary, similar to how XRP functions.

Schwartz explained that while RLUSD can technically function as a bridge, it’s still connected to Ripple and subject to U.S. laws. This connection is important because Ripple has the power to freeze or reclaim RLUSD, and U.S. courts can also instruct Ripple to take action.

This clarifies that RLUSD and XRP serve different purposes. XRP is generally seen as a digital asset for moving value, while RLUSD is a stablecoin – meaning its value is tied to traditional currency – designed to maintain a steady price within Ripple’s payment system.

Ripple expands RLUSD role in payments

RLUSD is currently used within Ripple Payments to help businesses process and finalize payments. This stablecoin enables institutions to complete international transactions more quickly and with less risk from fluctuating prices.

This digital asset helps users easily access funds for sending money and managing finances. Ripple is also presenting RLUSD as a bridge connecting traditional banking with the world of digital currencies, and even some decentralized financial applications.

Ripple has designed its system so that XRP and RLUSD have distinct, yet connected, functions. RLUSD is used for finalizing transactions and maintaining stability, while XRP acts as a way to move value between different systems.

Schwartz’s remarks also highlighted the security features of RLUSD. One of these is a ‘freeze’ function, which lets an issuer temporarily stop a suspicious address from sending or receiving tokens until any trust issues are resolved.

This feature helps financial institutions follow sanctions regulations and other compliance requirements. It also allows Ripple to limit activity on accounts involved in suspicious or inappropriate behavior.

The clawback feature allows the issuer to retrieve tokens from user wallets if needed. This gives RLUSD safeguards typically found in regulated stablecoins, which are different from most decentralized cryptocurrencies.

Ripple also moves on XRPL post-quantum plan

In addition to the recent discussions with the RLUSD, Ripple is working to protect the XRP Ledger from potential threats posed by future quantum computers. They plan to widely implement quantum-resistant security measures by 2028.

The rollout will begin with testing a new system alongside our existing ones, before being implemented more broadly. Ripple is collaborating with Project Eleven to test the system with validators and develop initial custody solutions as part of this process.

The latest plan reveals Ripple is focused on improving both how payments are processed and the overall security of its network. While RLUSD is geared towards making settlements and ensuring regulatory compliance, work on the XRP Ledger is concentrating on addressing potential future technical challenges.

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2026-04-21 14:54