David Schwartz Outlines Why XRP Still Beats Stablecoins

TLDR

• Ripple CTO Emeritus David Schwartz outlined three advantages XRP has over stablecoins in global finance.
• He said XRP acts as a neutral bridge asset across different national currencies.
• Schwartz explained that stablecoins often tie to a single fiat system and jurisdiction.
• He warned that stablecoin issuers can freeze or claw back funds under legal orders.
• Schwartz argued that decentralized assets like XRP reduce counterparty exposure in sensitive transfers.

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Ripple CTO Emeritus David Schwartz addressed questions about XRP adoption by global banks and its long-term relevance. He responded to claims that stablecoins could replace XRP in cross-border finance. He outlined three advantages that XRP holds over fiat-backed stablecoins.

Schwartz said XRP can function as a neutral bridge between different national currencies. He explained that stablecoins are usually tied to one fiat system and one jurisdiction. Therefore, they may not serve every global payment corridor.

He stated that a suitable stablecoin may not exist in every region. He said regulatory clarity, liquidity, and trust vary across markets. As a result, XRP can offer a neutral option across jurisdictions.

Schwartz added that XRP does not depend on a single sovereign issuer. He argued that this structure supports cross-border transfers between diverse currencies. He said this neutrality gives XRP flexibility in global settlements.

There are some cases where volatility is a huge problem and so a stablecoin is a better choice than a cryptocurrency. Similarly there are some cases where a regulated asset with a trusted counterparty is a benefit.

But cryptocurrencies have three big advantages over stablecoins.…

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

Stablecoins and Control Risks

Schwartz acknowledged that stablecoins work well when users need low volatility. He said regulated issuers can provide price stability and compliance features. However, he stressed that control mechanisms create trade-offs.

He explained that issuers can freeze or claw back funds under legal orders. He said this process can expose users to counterparty and political risks. Therefore, some use cases may require assets without centralized control.

Schwartz referenced compliance obligations for regulated firms such as Ripple. He said courts can require entities to act on specific accounts. He argued that decentralized assets reduce exposure in censorship-sensitive transfers.

Profit Incentives and Long-Term Upside for XRP

The debate began after commentator Mason Versluis questioned bank incentives. He pointed to Ripple’s 38 billion XRP holdings. He argued banks may hesitate if adoption enriches one company.

Schwartz rejected that view and framed it as unrealistic. He wrote, “Yeah, this makes business sense for us to do and would make us money.” He added that firms would not reject profit to avoid benefiting Ripple.

He also compared volatility and long-term value potential. He said fiat currencies rarely appreciate over time. He argued that XRP and Bitcoin can offer upside in long-term escrow scenarios.

Schwartz clarified that stablecoins and cryptocurrencies serve different purposes. He said stablecoins suit transactions where price stability is essential. However, he maintained that XRP fits use cases where neutrality and growth matter.

He repeated that businesses prioritize economic benefit over ownership concerns. He dismissed the idea that banks would avoid XRP solely to limit Ripple’s gains. His comments followed his public post on April 2, 2026.

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