The XRP Ledger has hit a major milestone, suggesting a high level of institutional interest in its platform. This comes amid increased activity surrounding the tokenization of assets on the XRPL.
Tokenized Assets on XRP Ledger Surpass $1 Billion Mark
Crypto investor Paul Barron shared on X that the XRPL has hit the $1 billion milestone in on-chain tokenized assets. This comes amid the increased use of the ledger to host major institutional projects.
Barron pointed out some of the factors that might be contributing to this level of growth. He started by pointing out that the growth is due to the recent addition of RLUSD to Binance. Last week, the exchange announced that it now allows the trading of the stablecoin with XRP or USDT. They also announced that they will soon add the XRP Ledger to their list of supported ledgers.
It is worth noting that the holdings of stablecoins on the ledger had risen by $100 million in January to $407 million. Also, last year, Ondo Finance added tokenized U.S. treasuries to the XRPL.
The product had some setbacks when the SEC probed the finance team about the legality of the process. However, the matter ended there, and since then, the team has expanded operations.
The XRPL now holds more than $145 million in tokenized U.S. Treasury debt. This is a 2,876% increase from last year. Additionally, Ripple has always said that it is at the forefront of the strategy of tokenization and stablecoins.
In other initiatives that are not related to the XRP Ledger, the company partnered with Securitize to bring the stablecoin to the BlackRock and VanEck’s tokenized funds market.
Why are Institutions Shifting to XRPL?
Notably, the system has recently seen major upgrades. For example, after the company incorporated RLUSD into the BlackRock BUIDL, the ledger’s programmability was enhanced. At the time, the developers said that they had made major developments on the smart contract to enhance its functionality.
Also, in October, the XRP Ledger developed a Multi-Purpose Token (MPT) standard for the tokenization of real-world assets. With this new function, institutions or issuers can restrict token holding to designated users. They can also enforce caps on supply. This adds a level of compliance on the platform.
In other developments, the ledger could see the launch of its prediction market. Another institution, Axiom, shared that it intends to launch a prediction market on the XRPL. The platform has already started its beta testing stage last week as institutional interest continues to grow.