David Schwartz Explains Why XRP Continues to Outperform Stablecoins

TLDR

• David Schwartz, Emeritus CTO of Ripple, laid out three core benefits XRP delivers compared to stablecoins in the global financial landscape.
• He noted that XRP functions as an impartial bridging asset for transactions across different sovereign currencies.
• Schwartz clarified that stablecoins are typically tied to a single fiat system and governing jurisdiction.
• He warned that stablecoin issuers are able to freeze or reclaim funds when required to do so by legal mandates.
• Schwartz contended that decentralized assets such as XRP lower counterparty risk for high-sensitivity transfer operations.

(SeaPRwire) –   David Schwartz, Emeritus CTO of Ripple, responded to queries about XRP adoption among global banks and its long-term relevance. He pushed back against claims that stablecoins could replace XRP in cross-border finance, outlining three distinct advantages XRP holds over fiat-backed stablecoins.

Schwartz stated that XRP can operate as a neutral intermediary between different national currencies. He explained that stablecoins are generally pegged to one fiat system and fall under a single regulatory jurisdiction, meaning they may not be able to support every global payment corridor as a result.

He pointed out that an appropriate stablecoin option may not be available in every regional market, as regulatory clarity, liquidity levels and user trust vary widely across different markets. This dynamic means XRP can provide an impartial alternative that works across multiple jurisdictions.

Schwartz added that XRP is not reliant on a single sovereign issuer for its operation. He argued that this structural design supports smooth cross-border transfers between a wide range of currencies, and that this neutral status gives XRP greater flexibility for global settlement use cases.

Volatility poses a major challenge in certain scenarios, making stablecoins a more suitable choice than standard cryptocurrencies. In the same vein, regulated assets paired with a trusted counterparty offer clear benefits in some use cases.

That said, cryptocurrencies hold three significant advantages over stablecoins.…

— David ‘JoelKatz’ Schwartz (@JoelKatz) April 2, 2026

Stablecoins and Centralized Control Risks

Schwartz acknowledged that stablecoins perform effectively for users seeking low price volatility. He noted that regulated issuers can deliver both price stability and built-in compliance features, but stressed that their embedded control mechanisms come with associated trade-offs.

He explained that issuers can freeze or claw back funds when compelled by legal orders, a process that can leave users exposed to both counterparty and political risks. For this reason, certain use cases require assets that are not subject to centralized control.

Schwartz referenced the compliance obligations that apply to regulated firms including Ripple, noting that courts can mandate these entities to take action relating to specific accounts. He argued that decentralized assets reduce risk exposure for transactions where censorship resistance is a key priority.

Profit Motivations and Long-Term Value Potential for XRP

The discussion was sparked after industry commentator Mason Versluis raised questions about bank incentives for XRP adoption. He highlighted Ripple’s holdings of 38 billion XRP, arguing that banks may be reluctant to adopt the asset if widespread uptake would enrich a single company.

Schwartz rejected this view, describing it as unrealistic. He wrote, “Yes, this is a sound business move for us that will generate revenue for the company.” He added that commercial firms would not turn down potential profits simply to avoid benefiting Ripple.

He also drew a comparison between volatility and long-term value potential, noting that fiat currencies almost never appreciate in value over extended time periods. He argued that XRP and Bitcoin can deliver positive returns for holders in long-term escrow arrangements.

Schwartz clarified that stablecoins and decentralized cryptocurrencies serve distinct use cases. He said stablecoins are ideal for transactions where price stability is a non-negotiable requirement, but maintained that XRP is better suited for scenarios where neutrality and growth potential are key priorities.

He reiterated that businesses prioritize financial returns over concerns about asset ownership, dismissing the idea that banks would avoid using XRP purely to limit Ripple’s financial gains. These remarks followed a public post he published on April 2, 2026.