In a recent video segment on June 5, David Schwartz, the Chief Technology Officer Emeritus of Ripple, highlighted the evolving capabilities of the XRP Ledger (XRPL). He emphasized that XRPL is transitioning from a fast payments system to a robust settlement and issuance layer for various financial instruments including tokenized stocks, money market funds, repos, and on-chain loans. This shift signals a significant bullish outlook for XRP, with a detailed roadmap set in place and promising institutional partnerships in the pipeline.
As for the current state of XRPL, it’s worth noting that while the infrastructure is being developed, some aspects are already operational. Notably, the real-world asset (RWA) layer on XRPL has shown remarkable growth. In 2025, the value of tokenized RWAs surged from $24.7 million to $567.9 million, representing an astonishing 2,200% increase, and by early 2026, it reached approximately $2.325 billion. This impressive trajectory positions XRPL as a significant player globally, ranking around eighth for distributed tokenized RWAs and holding about 1.53% of the total market.
Leading this development are key issuers such as VERT Capital, RLUSD, and OpenEden, which collectively accounted for 85.5% of tokenized value by mid-2025. Among these, Ripple’s stablecoin RLUSD, boasting a market cap of $1.3 billion, stands out as the third-largest US-regulated stablecoin.
Schwartz detailed two central mechanisms pivotal to the XRPL’s framework. The Multi-Purpose Token (MPT) standard enables the representation of complex structured assets like bonds and funds on-chain, incorporating attributes like maturity dates without the need for custom smart contracts. Additionally, the native lending protocol, part of XRPL Version 3.0.0 and being deployed under XLS-66, facilitates fixed-term institutional loans with dedicated vaults and automated repayments. The incorporation of a permissioned decentralized exchange (DEX), complete with credential-gated order books, has already launched its first offering, marking a shift from conceptual ideas to tangible infrastructure. The final step towards activating the lending protocol hinges on the approval of the XLS-66 validator vote, which requires an 80% supermajority.
In the same video, Schwartz meticulously sequenced his information, starting with Bitcoin’s foundational role in public blockchain functionality and positioning XRPL as the next layer that complements it. He stressed the need for XRPL to offer both native digital assets akin to Bitcoin and issued assets, which can include stablecoins and tokenized financial products. His near-term product categories included tokenized securities, money market funds, and tokenized stocks, along with the mention of tokenized repos and loans, although the latter still awaits full activation of the XLS-66 lending protocol.
Key institutions are showing their commitment to XRPL’s potential; for instance, the UK-regulated digital securities exchange Archax has pledged a $1 billion pipeline encompassing equities and fund units. Although the necessary infrastructure is being established to accommodate tokenized equities, specific product launches have yet to be publicly confirmed.
Schwartz made a critical observation regarding the adoption of tokenization. He posited that enterprises would be the driving force in creating features that would ultimately attract widespread retail participation, arguing that compliance-oriented, enterprise-built financial products would serve as the gateway to the next wave of tokenization adoption, as opposed to more speculative, permissionless protocols.
This strategic framing indicates Ripple’s vision for the future of finance where DeFi stands to replace traditional financial frameworks significantly. As developments continue, stakeholders and observers alike are keen to watch how XRPL will fulfill its ambitious roadmap and impact the broader financial landscape.
