XRP Ledger Captures 63% of Tokenized U.S. Treasuries, Overtaking Ethereum
The XRP Ledger (XRPL) now controls roughly 63% of the tokenized U.S. Treasury market, with $54.41 million in Treasury issuance on-chain, surpassing Ethereum volumes, according to RWA.xyz and market analysts. This shift reflects accelerating institutional adoption: permissioned DEXs, regulated stablecoin flows, and Dubai real-estate tokenization projects are migrating capital and issuance to XRPL. Recent XRPL upgrades — including token escrow functionality — enable programmable treasury management, automated settlements and decentralized marketplaces, improving suitability for institutional use. Total on-chain value on XRPL has exceeded $1 billion, and XRPL ranks second in 30-day Real-World Asset (RWA) growth. For traders, this signals a structural move toward regulated, yield-bearing assets on-chain rather than speculative retail trends. Key implications: growing institutional liquidity and settlement efficiency on XRPL could increase demand for network-linked tokens and stablecoins, tighten spreads for tokenized Treasuries, and shift institutional flows away from Ethereum and Solana. Short-term volatility may follow as markets re-price adoption prospects; long-term, XRPL’s lower fees, high throughput, and compliance-friendly tooling position it as core infrastructure for tokenized real-world assets.
Bullish
XRPL’s 63% market share in tokenized U.S. Treasuries and $54.41M issuance indicate meaningful institutional capital migration to a network that offers low fees, high throughput and new compliance-friendly features (token escrow, permissioned DEX). For traders this is bullish because: 1) institutional on-chain demand typically brings larger, more persistent liquidity than retail flows, supporting tighter spreads and higher baseline valuations for network-related tokens and stablecoins; 2) migration of RWA issuance away from Ethereum/Solana may reallocate trading volumes and custody flows, benefiting XRPL-linked markets; 3) improved tooling reduces settlement friction, encouraging more issuance and secondary-market activity over time. Short-term, expect increased volatility as markets re-price network adoption and liquidity shifts; arbitrage and flow-driven opportunities may arise between tokenized Treasuries on different chains and associated stablecoins. Long-term, sustained RWA growth on XRPL could underpin structural demand for XRPL ecosystem assets and services, making the development broadly bullish for XRP-linked markets. Historical parallels: institutional adoption events (e.g., custody and ETF approvals) often produced initial volatility followed by steadier inflows and elevated baselines — a pattern likely to repeat if XRPL keeps scaling RWA issuance and compliance features.