Main Points:
- XRPL as a Foundational Layer: The XRP Ledger (XRPL) is designed to support diverse assets, ranging from XRP and stablecoins to tokenized real-world assets, forming the underpinnings of an open, decentralized financial system.
- XRP’s Unique Role: As the only asset on XRPL that requires no counterparty, XRP facilitates network liquidity, pays for transaction fees, and supports automatic bridging—ensuring structural advantages even as new tokens are added.
- Expanding Use Cases: By combining XRP with dollar-pegged stablecoins like RLUSD and future tokenized assets, XRPL aims to cover lending, investment, and everyday payments—offering faster, more transparent services than traditional banks.
- Corporate and Institutional Adoption: Leading firms are allocating significant capital to XRP treasuries, and Ripple’s payment network is being integrated into corporate treasury operations to enhance cross-border payments.
- Regulatory Milestones: Key approvals—like DFSA’s authorization of RLUSD in Dubai and Ripple’s ongoing settlement status with the U.S. SEC—are driving renewed confidence and on-ramp opportunities for XRP.
- Technical Upgrades and Developer Ecosystem: Continuous XRPL enhancements, such as upgraded consensus protocols and interoperability features, are attracting developers and financial institutions to build on XRPL.
- Implications for Investors and Practitioners: With on-chain data showing whale accumulation and ETF rumors intensifying, market dynamics suggest potential price breakouts, while practitioners can leverage XRPL’s programmability to streamline operations.
Introduction
In a June 5, 2025 interview published by Crypto Troll, David Schwartz, Chief Technology Officer (CTO) of Ripple, outlined a vision that positions the XRP Ledger (XRPL) and XRP at the center of a transformative, decentralized financial ecosystem. Schwartz explained that the technologies Ripple has developed possess the potential to become synonymous with the entire financial system, rivaling and ultimately surpassing traditional banking infrastructure. By leveraging XRPL as a foundational layer and combining XRP with dollar-pegged stablecoins like RLUSD, Ripple seeks to deliver an integrated suite of financial services—spanning lending, investment, and everyday payments—in a faster, more open, and more cost-effective manner than incumbent banks or fintech providers. This article examines Schwartz’s vision, incorporates recent developments, and explores the implications for investors, corporate treasuries, and blockchain practitioners seeking new digital asset opportunities.
XRPL as a Foundational Layer
David Schwartz emphasized that the XRP Ledger is designed to serve as a universal foundation for handling various asset classes. XRPL’s consensus protocol enables near-instant settlement, low transaction costs, and resilience against network congestion—characteristics that position it as a viable alternative to legacy systems like SWIFT or Fedwire. According to Schwartz, XRPL will support not only XRP but also multiple stablecoins pegged to fiat currencies (such as the upcoming RLUSD) and tokenized real-world assets (such as equities, bonds, or commodities). By doing so, XRPL can cover a broad spectrum of traditional financial services, from lending and investment products to retail payments and treasury operations.
Recent developments underscore XRPL’s momentum as a foundational layer. In early June 2025, Dubai’s Financial Services Authority (DFSA) granted regulatory approval for RLUSD—a dollar-pegged stablecoin issued on XRPL—to operate within the Dubai International Financial Centre (DIFC). The DFSA approval enables licensed firms in DIFC to integrate RLUSD into payments, custody, and treasury workflows, effectively blending traditional finance with blockchain infrastructure under a regulated framework. Furthermore, market research indicates that RLUSD now ranks among the top 20 stablecoins by market capitalization, with over $333.6 million in supply and more than $10 billion in trading volume since its December 2024 launch. This regulatory sanction and growing market acceptance illustrate XRPL’s evolution from an experimental ledger into a core component of global payment infrastructures.
The Unique Role of XRP within the Ecosystem
Within XRPL, XRP holds a distinctive status. Schwartz noted that XRP is the only native asset that requires no counterparty—meaning users do not need an issuer or a trust line to transfer XRP. Moreover, every XRPL account can receive XRP by default, and XRP is the sole asset used for paying transaction fees on the network. These design choices confer a perpetual structural advantage to XRP, especially as additional tokens and stablecoins are introduced.
XRP also functions as an automatic bridge for cross-currency transactions on XRPL. When two parties transact with different assets—for example, an RLUSD payment to someone who only holds XRP—XRPL automatically finds the most efficient path (often via XRP) to complete the exchange, reducing friction and ensuring liquidity. This “auto-bridging” capability simplifies cross-border transfers, minimises slippage, and enhances settlement speed. Consequently, network participants see XRP not merely as a speculative token but as a crucial utility for liquidity and interoperability across digital assets.
Despite XRP’s integral role, Schwartz concedes that measuring XRPL’s utility and its reflection in XRP’s market price is challenging. On-chain metrics show that while monthly escrow releases and locks dynamically influence the circulating supply, demand drivers—such as institutional treasuries allocating XRP reserves—are less directly visible on XRPL’s public ledger. Nevertheless, developers and financial institutions increasingly recognize XRP’s function as a settlement asset and as a fee mechanism, which could bolster its long-term valuation.
Expanding Use Cases: Tokenization and Stablecoins
A cornerstone of Schwartz’s vision is the integration of stablecoins—specifically RLUSD—with XRP to encompass lending, investment, and everyday payments. In this model, XRPL acts as the underlying settlement layer, allowing stablecoins to be transferred instantly, with XRP facilitating liquidity and cross-currency conversions.
RLUSD’s Emergence and Utility
Ripple launched RLUSD in December 2024 and has since secured regulatory approvals from both the New York Department of Financial Services (NYDFS) and the Dubai Financial Services Authority (DFSA). NYDFS approved RLUSD for issuance under its trust company charter, enabling RLUSD to be listed on major exchanges and incorporated into custodial services. In Dubai, RLUSD gained regulatory clearance in June 2025, permitting its use within the DIFC for payments and digital asset services. Coupled with listing on exchanges such as Kraken, Bitstamp, and Bullish, RLUSD is now accessible to a broad range of users, from retail investors to institutional clients.
RLUSD is designed to serve multiple functions:
- Cross-Border Treasury Operations: By leveraging Ripple’s extensive payout network, RLUSD allows corporates to move value across borders instantly and with minimal fees, reducing reliance on volatile currency markets.
- DeFi Integration: RLUSD’s presence on both XRPL and Ethereum blockchains enables interoperability with decentralized finance (DeFi) protocols—providing on-ramp liquidity for DEXs, lending platforms, and automated market makers (AMMs).
- Collateral for Tokenized Assets: Real-world asset (RWA) tokenization projects—such as tokenized real estate or commodities—can utilize RLUSD as a stable collateral, ensuring predictable pricing and settlement.
- Retail Payments: Merchants and consumers can transact in a familiar U.S. dollar peg using RLUSD, enjoying XRP’s settlement speed and cost efficiency beneath the hood.
By combining RLUSD’s price stability with XRP’s liquidity and bridging features, XRPL-based applications can deliver end-to-end financial solutions—spanning the issuance of tokenized bonds, management of lending pools, and execution of micropayments—without relying on centralized intermediaries.
Corporate and Institutional Adoption of XRP
Ripple’s vision is not confined to technical specifications; corporate adoption has been accelerating. In early June 2025, China-based Webus International filed a Form 6-K with the U.S. Securities and Exchange Commission, revealing plans to build a $300 million corporate treasury focused on XRP. Webus intends to fund the treasury through loans and credit facilities, rather than issuing new shares, and will integrate Ripple’s payment network to optimize cross-border payments for its global chauffeur services. Webus joins other companies—such as VivoPower International, which announced a $121 million XRP treasury—highlighting a broader trend of corporations seeking exposure to XRP as a strategic liquidity asset.
Institutional interest extends beyond corporate treasuries. Major hedge funds and family offices are exploring XRP as part of their digital asset allocations, anticipating the potential for rapid value transfer and hedge against forex volatility. On-chain data indicates that large “whale” addresses have been accumulating XRP throughout May and early June 2025, especially around price levels between $2.20 and $2.40. This accumulation suggests that sophisticated traders view XRP’s risk-reward profile favorably, particularly in light of upcoming catalysts such as ETF decisions and regulatory clarity.
Beyond treasury holdings, Ripple’s payment solutions are being piloted by financial institutions. For instance, several banks and remittance providers in the Middle East and Southeast Asia have begun integrating RippleNet to settle cross-border transactions in real time using XRP as a bridge currency. This move reduces reliance on traditional correspondent banking, slashes settlement times from days to seconds, and minimizes foreign exchange fees—an attractive proposition for large-volume, low-margin cross-border corridors.
Regulatory Developments and Market Dynamics
Regulatory clarity has been a pivotal driver for XRP’s resurgence. The U.S. Securities and Exchange Commission (SEC) lawsuit against Ripple, initiated in late 2020, cast uncertainty over XRP’s status as a security. However, recent rumors indicate that Ripple and the SEC could reach a settlement by June 13, 2025—an outcome that would likely confirm XRP’s classification as a non-security in certain contexts and unlock broader institutional participation. Additionally, speculation around the approval of spot XRP exchange-traded funds (ETFs) has dominated market discourse. Several asset managers, including Franklin Templeton, have filed proposals to launch spot XRP ETFs, with SEC decisions expected by mid-June 2025. Analysts suggest that an ETF approval could mirror Bitcoin’s 2024 ETF-driven rally—potentially driving billions in fresh capital into XRP and propelling its price beyond key resistance levels near $2.65.
Beyond the U.S., regulatory environments are increasingly favorable toward XRP and RLUSD. In March 2025, the NYDFS approved RLUSD under its trust company charter, paving the way for major exchange listings and institutional custody solutions. In the UAE, the DFSA’s approval of RLUSD in June 2025 allows licensed firms to incorporate the stablecoin into payments, custody, and treasury operations within the DIFC. As a result, Ripple now operates under regulated frameworks in key financial hubs, including New York and Dubai, which bolsters confidence among banks and payment service providers.
Simultaneously, central banks in Asia and Europe are exploring digital currency initiatives. While many such projects remain in pilot stages, the existence of a robust, regulated stablecoin ecosystem (e.g., RLUSD) on XRPL offers a complementary pathway for bridging central bank digital currencies (CBDCs) with existing blockchain networks. Schwartz has noted that if central banks launch their own digital currencies on XRPL or require interoperability, the ledger’s consensus protocol and liquidity mechanisms could readily support multi-asset settlement—further solidifying XRPL’s position as a foundational layer.
Technical Upgrades and Developer Ecosystem
Ripple continues to invest in XRPL’s technical evolution, ensuring scalability, security, and enhanced functionality. Recent protocol upgrades have improved transaction throughput by optimizing consensus mechanisms, reducing confirmation times to below four seconds even under high network load. Additionally, developers have introduced features to enhance programmability, such as Extended Dynamic Fees (XDP) to adjust fees based on network conditions and the forthcoming Hooks Amendment, which allows on-ledger smart contract-like functionality without compromising XRPL’s native simplicity.
The Hooks Amendment, currently in testnet, will enable developers to embed small actions (hooks) directly into account objects, permitting custom logic—such as escrow releases, conditional payments, or automated order-matching—without relying on external smart contract platforms. Once deployed on mainnet, Hooks will allow financial institutions to implement tailored compliance checks, dynamic billing cycles, and cross-asset swaps natively on XRPL. This increased flexibility will spur new DeFi applications, including on-chain lending markets, tokenized bond issuances, and decentralized exchanges optimized for tokenized real-world assets.
Simultaneously, the interledger protocol (ILP) has matured alongside XRPL, enabling seamless value transfer across disparate ledgers. Through ILP, XRP can serve as a common settlement currency, while various ledgers—such as Ethereum, Stellar, or private consortium chains—interoperate via standardized connectors. Ripple’s developer grants and hackathons have attracted hundreds of new projects, ranging from micropayment routers for IoT devices to supply chain tracking solutions that leverage tokenized asset transfers. These initiatives demonstrate XRPL’s versatility beyond pure financial services, extending into sectors like logistics, gaming, and identity verification.
Implications for Investors and Practitioners
For investors hunting new digital asset opportunities, XRP and related tokens on XRPL present a compelling proposition. On-chain data, including whale accumulation patterns and escrow release schedules, offers transparency—allowing sophisticated traders to anticipate supply dynamics. In June 2025, Ripple unlocked 1 billion XRP from escrow, valued at approximately $2.21 billion, through three transactions, while simultaneously locking 670 million XRP back into escrow. The net addition of roughly 330 million XRP into circulating supply in early June 2025 coincided with a 10% price surge, pushing XRP above $2.26 amid optimistic ETF news. These dynamics highlight how escrow mechanics and corporate treasury movements can materially influence market sentiment.
ETF developments also factor heavily into investor calculus. Analysts forecast that if a spot XRP ETF is approved by mid-June 2025, institutional flows could dwarf existing liquidity, potentially driving XRP to new all-time highs by year-end. Bullish scenarios range from $3.40 by July to $5 by August under a favorable ETF and settlement backdrop, while more aggressive forecasts envision $10 by December 2025 and even five-figure prices by 2030 if widespread adoption continues. However, investors must weigh regulatory risks, such as potential delays in the SEC settlement or unforeseen legal challenges in other jurisdictions. The next few weeks will be critical for determining XRP’s trajectory.
For blockchain practitioners—developers, fintech startups, and legacy financial institutions—XRPL’s ecosystem offers tools to innovate. Corporations can adopt XRPL-based solutions to optimize liquidity management, using XRP as a bridge currency to settle foreign exchange positions instantly and securely. Treasury teams can leverage RLUSD to manage FX exposure, execute hedging strategies, and access DeFi protocols for short-term yield generation. Banks can implement on-ledger credit systems by tokenizing loan obligations on XRPL, enabling peer-to-peer lending markets with transparent collateralization. Additionally, XRPL’s low energy consumption (compared to proof-of-work networks) aligns with corporate sustainability goals, making it an attractive choice for green finance initiatives.
Conclusion
David Schwartz’s vision casts XRPL and XRP as catalysts for a comprehensive, decentralized financial system that transcends traditional banking. By positioning XRPL as a foundational layer for handling multiple assets—and by leveraging XRP’s structural advantages as the native token—Ripple aims to deliver end-to-end solutions for lending, investment, and payments. The integration of stablecoins like RLUSD offers price stability while retaining the speed and cost efficiency inherent to XRPL. Corporate treasuries such as Webus International’s $300 million XRP reserve, coupled with VFive Power’s similar initiatives, signal growing institutional recognition of XRP’s utility as a liquidity asset and settlement medium.
Regulatory milestones—particularly the DFSA’s approval of RLUSD in Dubai, NYDFS’s endorsement, and the evolving status of the SEC lawsuit—are fueling market optimism. With major exchanges listing RLUSD and rumors of spot XRP ETF approvals by mid-June 2025, market dynamics point toward potential breakout scenarios. Technical upgrades to XRPL, including improved consensus protocols and the Hooks Amendment, are attracting developers and financial institutions seeking programmable, efficient ledger infrastructure.
For investors, the combination of transparent escrow mechanics, whale accumulation trends, and ETF catalysts presents a compelling risk/reward profile. For practitioners, XRPL’s expanding toolkit—from stablecoins to tokenized real-world assets—opens pathways to innovate across corporate treasury, cross-border payments, DeFi, and beyond. As XRPL continues to evolve and global regulatory clarity emerges, the question is not whether Ripple will surpass banks, but when XRPL-based financial applications will become the new norm—ushering in an era of faster, more transparent, and truly global finance.
