Ripple’s Schwartz explains RLUSD use case and control features

Ripple CTO Emeritus David Schwartz said RLUSD can work as a bridge asset in some payment flows, but he said it is not neutral in the same way as XRP. 

He made the comment in response to a question about whether RLUSD can serve as a neutral bridge like XRP.

Schwartz answered with “Yes and No” before explaining the difference. He said RLUSD can support bridge functions, but it remains tied to Ripple and the U.S. legal system. He said that link matters because Ripple can freeze RLUSD and claw it back, while courts in the United States can also direct Ripple to act.

The explanation places RLUSD in a different role from XRP. XRP is widely presented as a decentralized asset used for value transfer, while RLUSD is a fiat-backed stablecoin built for price stability in Ripple’s payment network.

RLUSD is already part of Ripple Payments, where it supports payment and settlement services for enterprise users. The stablecoin allows institutions to settle cross-border transactions faster while reducing exposure to price swings.

The asset also gives users a way to access liquidity for remittances and treasury operations. Ripple has also positioned RLUSD as a link between traditional finance and digital asset markets, including selected decentralized finance use cases.

Ripple’s setup keeps XRP and RLUSD in separate but related roles. RLUSD serves as a stable settlement instrument, while XRP continues to function as a bridge asset in broader value transfer flows.

Additionally, Schwartz’s comments also drew attention to RLUSD’s control features. The freeze function allows an issuer to block a flagged address from sending or receiving tokens until the trust line is restored.

That feature is designed to help issuers meet sanctions rules and other compliance needs. It also gives Ripple a way to restrict activity when an account is tied to misuse or other flagged conduct.

The clawback function gives the issuer the ability to recover tokens from wallets under certain conditions. That means RLUSD includes controls that are common in regulated stablecoin models but not in decentralized assets.

Ripple also moves on XRPL post-quantum plan

Alongside the RLUSD discussion, Ripple is also preparing the XRP Ledger for post-quantum readiness. The company has outlined a roadmap that targets 2028 for a broader rollout of quantum-resistant cryptography.

The plan starts with testing and a hybrid model that runs beside current systems before wider adoption. Ripple is also working with Project Eleven on validator testing and early custody prototypes as part of that effort.

That roadmap shows Ripple is working on both payment infrastructure and long-term network security. While RLUSD remains focused on settlement and compliance, XRP Ledger development continues around future technical risks.