Schwartz Says RLUSD and RWAs Tokenization Have No Direct Impact on XRP, But Indirect Impact Could Be Massive

Ripple CTO Emeritus David Schwartz clarified that activities such as RLUSD transactions, RWA tokenization, and bridging on the XRP Ledger do not directly affect XRP’s price.

His remarks sparked a broader discussion about how developments like RWA tokenization and RLUSD activity may influence XRP’s market value. 

The debate over the drivers of XRP’s value has intensified as several initiatives emerge on the XRPL. Supporters often highlight developments such as RLUSD transaction, tokenized real-world assets, and cross-chain bridging as catalysts that could eventually push XRP higher.

However, Schwartz recently addressed a misconception surrounding these developments.

No benefit from their direct impact. But I think those things can sometimes have massive indirect impacts.

— David ‘JoelKatz’ Schwartz (@JoelKatz) March 13, 2026

Key Points

• Ripple CTO Emeritus Schwartz says token burning does not directly increase the price of a crypto asset.
• He stresses that RLUSD transactions, RWA tokenization, and XRPL bridging do not directly affect XRP’s market value.
• Despite agreeing on the lack of direct impact, he highlighted the potential for major indirect effects.
• Increased network activity could still propel XRP adoption and ultimately support the price over time. 

Token Burns Do Not Impact Price 

The discussion began after a community member suggested that instead of conducting share buybacks, Ripple should burn the XRP held in escrow to support holders.

In response, Schwartz explained that burning tokens does not automatically drive price appreciation. To illustrate his point, he shared a chart comparing XRP and XLM price movements between January 2019 and March 2020. 

During that period, both assets moved in similar directions, even though Stellar burned nearly half of its total supply. According to Schwartz, the chart showed no clear price effect from the burn.

RLUSD, RWA Tokenization, and XRP Bridging Have No Direct Impact on XRP Price 

His comments sparked further discussion within the community. Some observers, like independent blockchain specialist Spade, interpreted his view to mean that token burns do nothing for price performance. 

From this perspective, Spade argued that XRPL-based initiatives, including RLUSD activity, RWA projects, and XRP bridging, should also have no impact on XRP because their only direct effect is the burning of small transaction fees. 

Schwartz largely agreed with the technical premise, emphasizing that these projects do not have a direct impact on XRP’s price. For context, every transaction on XRPL consumes a tiny fee paid in XRP, which the protocol permanently destroys to prevent spam. 

Despite the burn effect from RLUSD, bridging, and RWA tokenization, Schwartz acknowledged that these initiatives do not create direct upward pressure on XRP’s price through the burn mechanism alone. 

They Offer Massive Indirect Impacts

Nonetheless, he stressed that the indirect effects could be substantial. As stablecoin payments, tokenized assets, and bridging services expand on the XRP Ledger, they could attract more users, including developers and institutions, to the network. 

Over time, this growth may increase ecosystem activity and liquidity, potentially strengthening XRP’s role within the broader financial infrastructure. In essence, Schwartz’s view suggests that ecosystem adoption, not fee burning, is the more meaningful factor that could influence XRP’s long-term value.