Ripple is actively working to make decentralised finance (DeFi) a familiar and safe environment for regulated institutions, positioning the XRP token as the centrepiece of this effort. While DeFi's early growth cycles were fuelled by cash pools open to individuals and high risk tolerance - with total locked value (TVL) surpassing $100 billion at peak times - Ripple is betting that the next phase will be different.
The company's vision moves away from 'permissionless' pools to focus on controlled access, compliant regulations, and the tokenization of cash and collateral, elements that institutions recognise as standard market infrastructure.
A roadmap for credit and compliance
In a blueprint published in February, Ripple outlined an institutional DeFi 'stack' on the XRP Ledger (XRPL). This ecosystem focuses on four pillars: settlement via stablecoin, tokenized collateral, compliance controls, and an on-ledger credit layer, planned for later this year.
Instead of competing with large DeFi hubs based purely on total volumes, Ripple is focusing on 'primitives' that align with the organisation of traditional markets: identity, access control, cash flows, and collateral settlement.
The scaling of Real-World Assets (RWA) and liquidity
A key point of Ripple's strategy is that the most robust asset may soon reside outside of traditional DeFi totals. The tokenization of real-world assets (RWAs) is attracting attention even during speculative cooling-off phases. According to RWA.xyz, the value of the assets represented has reached about $21.41 billion, with US Treasury securities tokenized to the tune of about $10 billion.
In this context, market forecasts are ambitious:
- McKinsey estimates that the capitalisation of tokenized markets could reach $2.trillion by 2030.
- BCG and ADDX predict an even greater opportunity, reaching up to $16.1 trillion over the same period.
What's already active and what's coming on XRPL
Ripple's institutional argument is based on the distinction between what the network already supports and what is under development. At present, XRPL handles significant volumes: Messari reports that in the fourth quarter of 2025, average daily transactions increased by 3.1 per cent to 1.83 million, despite a decline in active addresses to about 49.000.
Among the components already operational are:
- Multi-Purpose Tokens (MPT): standard for tokens with metadata and restrictions.
- Credentials: identity layer to attach KYC certificates to participants.
- Deep Freeze and Simulate: tools for risk management and issuer control.
- XRPL EVM Sidechain: for compatibility with Ethereum applications.
The near-term roadmap includes a DEX (Decentralised Exchange) with permissions and lending protocols based on the XLS-65 and XLS-66 specifications. Currently, DefiLlama's data show stablecoins on XRPL of around $418 million, with the new RLUSD accounting for 83% of the total.
XRP: the heart of financial plumbing
The importance of XRP does not stem from a narrative of token 'burn', but from its routing function. Although transaction costs are minimal (often only 10 drops), XRPL uses structural reserves that create demand: 1 XRP per account and 0.2 XRP per object (such as bids or lines of trust).
However, the real value lies in the self-bridging of native DEX: XRP can act as an intermediary between different tokenized currencies or assets, reducing costs. If regulated stablecoin and FX markets develop on DEX with permissions, XRP will become the strategic asset that market makers will hold in inventory to intermediate global financial flows.
