BitGo CEO Critiques Ripple’s XRP Model Amid Growing Stablecoin Adoption
During the recent Digital Banking 2025 summit, Mike Belshe, CEO of BitGo, expressed strong criticism of Ripple’s original XRP bridge model, labelling it as obsolete. He argued that stablecoins, like Ripple’s new RLUSD, fundamentally enhance efficiency in cross-border payments, marking a significant shift in the landscape of digital transactions.
Belshe’s remarks illuminated a pivotal change in Ripple’s strategy, where he pointed out the ironic transition from XRP to stablecoins. "Ripple just launched a stablecoin," he said, emphasising that stablecoins present a more streamlined option for global payments. He reiterated that the dual conversion of currencies—swapping dollars for XRP and then XRP for other currencies—was unnecessary and inefficient. Instead, Belshe highlighted that stablecoins backed by the dollar are vastly superior, enhancing transaction speeds and reducing complexity.
Looking forward, Belshe envisions a future characterised by stablecoin-driven payments that eliminate the need for traditional banking institutions. He posited that true scalability in payment platforms would result from direct access to Federal Reserve systems, rather than depending on intermediary tokens like XRP.
Reflecting on the current market, Ripple’s RLUSD stablecoin, which launched in December following regulatory approval, is rapidly gaining traction, approaching US$450 million (approximately AU$690 million) in supply. In contrast, XRP’s trading price has dipped by 1.8% to US$2.18 (around AU$3.35), which is indicative of the ongoing volatility in the crypto market. This decline comes in spite of a temporary boost attributed to a sudden tweet from a Ripple co-founder, suggesting the market’s fluctuating nature remains affected by broader trends and sentiments.
Belshe’s perspective, shared during his discussion at the summit, underscores a notable transition in how businesses view digital assets and their applications in everyday finance. As stablecoins gain momentum, the future may favour a payments ecosystem that moves away from reliance on traditional financial intermediaries, creating possibilities for instant and direct transactions.
Furthermore, as the crypto space continues to evolve, investors and businesses alike will need to adapt to these changes. Whether stablecoins will dominate the landscape remains to be seen, but with Ripple’s RLUSD gaining prominence, it certainly positions itself as a formidable player in the evolving digital payment arena.
With firms like BitGo leading the charge in advocating for innovative payment solutions, the narrative around cryptocurrencies—including XRP—will likely continue to adapt, reflecting ongoing developments in technology and regulatory frameworks.
