I see a lot of confusion how RLUSD and XRP operate. This should clear it up some.
RLUSD runs on XRPL and Ethereum — it doesn’t require XRP to exist or to move dollar-denominated value.
But zoom out to what happens around RLUSD on XRPL:
→ Every AMM pool needs two distinct assets. RLUSD/EUR-stable, RLUSD/tokenized treasuries — the non-RLUSD side of that pool has to be something.
→ Cross-currency settlement (RLUSD → yen, RLUSD → euro-stable) still routes through a neutral bridge asset that no issuer can freeze mid-transaction.
→ On-chain lending collateral needs the same trait — an asset without an off-switch.
XRP isn’t “required” for RLUSD in the way people frame it. It’s the connective tissue around RLUSD as XRPL activity scales.
So in essence, it isn’t REQUIRED, but it is heavily involved in the entire ecosystem.