Ripple Is Part of a Stablecoin Push by 3 Asian Central Banks. Where Does That Leave XRP? - 24/7 Wall St.
Three Asian central banks have joined forces with Ripple and major payment networks to expand a cross-border stablecoin project serving 111 million people, though XRP's role remains unclear.
The central banks of Singapore, Malaysia, and Thailand are expanding their cross-border stablecoin initiative with Ripple, Visa, and Mastercard, creating a payment network serving 111 million people. This collaboration focuses on stablecoins—cryptocurrencies tied to stable assets like the U.S.—rather than Ripple's XRP token, which has seen significant declines in 2026.
BLOOM Project Expansion
The BLOOM project (Borderless, Liquid, Open, Online, Multi-currency) aims to enhance modern payment settlement methods through a public-private partnership. Earlier trials included Visa and payment provider Nium testing stablecoin settlements in U.S. dollars and euros around the clock. The recent expansion adds Malaysia's Bank Negara and Thailand's central bank to the initiative, with Mastercard joining as a key partner.
Ripple's Ambiguous Role
While Ripple is listed as a participant in the BLOOM project, the central banks have not clearly defined its specific involvement. Ripple holds necessary licenses in Singapore and has been recognized as a national trust bank in the U.S. Its subsidiary, Ripple Markets APAC, obtained a Major Payment Institution license from MAS, allowing it to conduct large volumes of payment services including those involving digital payment tokens.
Ripple Payments can settle transactions using digital payment tokens 'such as RLUSD and XRP,' letting clients 'choose whether or not to hold DPT.'
Stablecoins Take Center Stage
Reports on the BLOOM project emphasize stablecoins and tokenized deposits as the primary settlement assets, not XRP. This means the initiative does not create additional demand for XRP, as banks transferring dollar-backed tokens have no need to acquire a volatile cryptocurrency during transactions. Ripple's stablecoin, RLUSD, currently has a market value of about $2.4 billion and was integrated into a U.S. bank's core systems in early October.
Market Response
The market has reacted negatively to XRP's limited role in this initiative, with the cryptocurrency falling 0.5% over the past day to $1.32 and down 28.8% so far in 2026. This decline is significantly more than Bitcoin's 3.7% drop over the same period. Meanwhile, Ripple benefits from the collaboration by gaining recognition from three central banks and access to a market of 111 million people, while RLUSD secures a credible path to regulated settlement.
Related
