Lark Davis Says RLUSD Growth May Not Require Large XRP Holdings

Crypto investor Lark Davis argued that growth in Ripple USD (RLUSD) may not create substantial institutional demand for XRP (XRP), because the stablecoin can move across networks where XRP is not required. In a Nov. 8 post on X, Davis pointed to RLUSD’s availability on multiple blockchains, including Ethereum. Transfers there do not require XRP. Transactions on the XRP Ledger use XRP to pay network fees, but Davis argued that institutions could handle thousands of transfers while holding as little as $50 in XRP. He presented that amount as an example of how little XRP might be needed for fees, not as a measurement of institutional balances. Davis’s argument concerns the XRP needed to transact with RLUSD, while the assets have different uses.

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