by Enoch Mwathwa
Pro-XRP legal advocate John Deaton has clarified that XRP is not in competition with Circle or its stablecoin, USDC. His statement was issued after social media discussions created confusion regarding Ripple’s RLUSD and the XRP token’s role.
XRP Not Competing With Circle, Says Deaton
John Deaton addressed the issue on X, responding to investor confusion. A public claim had suggested that XRP was directly competing with Circle’s stablecoin operations. The misinformation led Barstool Sports founder Dave Portnoy to sell his XRP holdings prematurely..
https://twitter.com/johnedeaton1/status/1946156194839842850?s=46
Portnoy later expressed regret for the decision after XRP hit a new all-time high. “I want to cry,” he stated in a video message, admitting he acted on wrong advice. Deaton responded by explaining that Ripple and Circle are separate companies that operate in the same financial infrastructure space but do not compete through their tokens.
Deaton emphasized, “XRP is not a stablecoin. XRP is a digital asset that powers the XRP Ledger.” He added that Ripple is building a stablecoin called RLUSD, which will compete with Circle’s USDC, not with XRP.
Ripple’s RLUSD Aims for the Stablecoin Market
Ripple’s stablecoin RLUSD is designed to enter the growing stablecoin sector. It will challenge top stablecoins such as USDC and USDT. Deaton clarified that XRP will not play a role in the issuance or backing of RLUSD.
The purpose of RLUSD is to serve as a stable payment solution. XRP, in contrast, continues to act as a liquidity asset and bridge token on the XRP Ledger. Ripple’s Managing Director, Reece Merrick, also explained that confusion between Ripple and XRP is common among users and investors.
Deaton stressed the need to understand the separation between the XRP token and Ripple’s business ventures. He said that misinformation could lead to wrong financial decisions by the crypto community. The clarification was supported by XRP proponents who have long pointed out the distinction.
Ripple and Circle Are Not Business Rivals
Deaton also mentioned that Ripple and Circle had previously discussed business partnerships. He noted that past collaboration talks suggest cooperation rather than competition between the two fintech firms.
“Ripple and Circle were once rumored to be exploring a business deal,” Deaton wrote. This further confirms that XRP and Circle’s USDC do not compete directly. The XRP token continues its role within its ecosystem without attempting to replace any stablecoin.
Market data shows XRP rose over 23% in the past week, outperforming major assets like Bitcoin. However, Deaton cautioned users not to base investment decisions on misunderstandings. Reliable sources such as CoinMarketCap and official X posts by Deaton were used in preparing this report.
#blockchain #crypto, #decentralized, #distributed, #ledger
