State of XRP Ledger Q2 2025

Key Insights

• In July, the SEC listing standards for crypto ETPs became public, revealing a requirement of at least six months of futures tracking before listing. XRP was listed on Coinbase’s Derivatives Exchange in April, paving the way for US spot ETF approval and listing in the fall.
• Ripple’s USD-pegged stablecoin RLUSD closed Q2 with a market cap of $65.9 million on the XRPL (+49.4% QoQ), making it the network’s largest stablecoin. Multiple stablecoins also launched on the XRPL in Q2, including Circle’s USDC, Braza Group’s USDB, Schuman Financial’s EURØP, and StratsX’s XSGD.
• The XRPL closed Q2 with an all-time high RWA market cap of $131.6 million as multiple new RWAs were issued after being announced at XRPL Apex in Singapore in June. These include Ondo’s OUSG tokenized treasury fund, Guggenheim’s Digital Commercial Paper, and tokenized real estate issued by Ctrl Alt.
• The XRPL EVM Sidechain went live on June 30, providing the XRPL ecosystem access to EVM developers and functionality, with a general-purpose scope.
• Permissioned DEX, which ensures only accounts with valid credentials can create or fill orders on a permissioned domain, and TokenEscrow, which enables escrow support for Trustline-based tokens (IOUs) and Multi-Purpose Tokens (MPTs), were released as part of Rippled V2.5.0 in June.

Primer

XRP Ledger (XRP) has been running for over a decade, offering cross-currency and cross-border payments, and tokenization, among other features. Core value propositions of the XRP Ledger (XRPL) include fast and cheap transactions (relative to other currency-focused networks) and native functionalities — such as tokens, NFTs, a decentralized exchange (DEX), escrow functionality, embedded compliance, and token management.

With these capabilities, the XRPL can execute many of the same functions as other networks. NFTs, stablecoins, synthetic assets, and other markets found on programmable settlement layers are available on the XRPL as native functionality with composability through enshrined mechanisms such as a central limit order book (CLOB) and automated market maker (AMM). The XRPL base layer doesn't currently support arbitrary smart contracts, which was a deliberate design choice to prioritize security and stability through simplicity. However, plans to introduce advanced programmability via native smart contracts were announced in September 2024. The first step in this effort is the introduction of Extensions, a feature that will allow developers to attach code to existing XRPL primitives to enhance their functionality without entirely new smart contracts. Additionally, alternative execution environments, via sidechains, add additional functionality and use cases to the overall ecosystem.

The XRPL is supported by various development groups and individuals, including the XRP Ledger Foundation, Ripple, XRPL Labs (and Xaman), and XRPL Commons. It provides a digital payment infrastructure not just for individuals but also for existing financial entities, such as commercial banks and fintechs, with the community's deep interest in B2B and B2C solutions for finance. For a full primer on XRP Ledger, refer to our Initiation of Coverage report.

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Key Metrics

Financial Analysis

At the close of Q2’25, the XRPL’s native token, XRP, was the fourth-largest crypto asset by market capitalization at $132.0 billion (+8.5% QoQ). XRP’s price increased 7.1% QoQ, with the discrepancy between market cap and price due to a 1.4% increase in circulating supply.

Key Qualitative Updates

In July, the SEC listing standards for crypto ETPs (encompassing spot ETFs) became public, revealing a requirement for more than six months of futures tracking for a crypto asset before ETP listing. XRP was listed on Coinbase Derivatives Exchange on April 21, 2025, and the CME on May 18, 2025, paving the way for approval and launch of U.S. spot XRP ETFs in the fall of 2025. There are eight active S-1 filings to launch a spot XRP ETF in the United States, while three spot XRP ETFs launched in Canada in June, and Hashdex launched the world’s first XRP spot ETF in Brazil in April.

Following the Digital Asset Treasury (DAT) plan pioneered by Strategy Executive Chairman Michael Saylor, many companies, including a number publicly traded in the US, have announced plans to acquire XRP, with cumulative commitments totalling more than $1 billion. These include Trident Digital Tech Holdings ($500 million), Webus International ($300 million), Wellgistics ($50 million), Nature’s Miracle Holding Inc. ($20 million), and Hyperscale Data Inc.($10 million), among others. Additionally, Vivopower announced plans to purchase $100 million in privately held Ripple shares to acquire XRP at an implied price of $0.47 per token.

On Aug. 7, Ripple and the SEC jointly agreed to drop their appeals in the Second Circuit, making SDNY U.S. District Judge Analisa Torres' July 2023 ruling the unappealed final judgment for the case. In 2023, Torres ruled that Ripple’s programmatic sales of XRP to retail exchanges did not violate federal securities laws, but that its institutional sales did, ordering Ripple to pay a $125 million fine.

XRP Burns and Escrow Release

On XRPL, transaction fees are systematically burned, applying deflationary pressure to the total supply of 100 billion XRP. Since the XRP Ledger’s inception, about 14.1 million XRP ($31.7 million at the close of Q2’25) has been burned. This low burn rate is due to the relatively low transaction fees (<$0.005 per transaction) on the network. Counteracting the burn rate, 1 billion XRP ($2.24 billion at the close of Q2’25) is released from escrow to Ripple per month. Any XRP not spent or distributed by Ripple in that month is put into new escrow contracts. This system will continue until the remaining ~36.6 billion XRP becomes liquid.

Unlike many other cryptocurrency networks, the XRPL does not distribute rewards or transaction fees to its validators. In Proof-of-Association (PoA), rather than receiving rewards, validators are mainly incentivized by supporting the decentralization of the network, similar to a full node for Ethereum/Bitcoin rather than a validator/miner.

XRP’s circulating market cap increased 8.5% QoQ from $121.6 billion to $132.0 billion, underperforming the combined market capitalization of BTC, ETH, and SOL, which increased by 23.4% QoQ. In contrast, XRP closed Q1 up 1.9% QoQ, while the combined market cap of BTC, ETH, and SOL was down 22%. Year-over-year, XRP’s circulating market cap has increased 398% from $26.5 billion at the close of Q2 2024. On the XRPL, transaction fees are burnt and not distributed to stakers like on many other networks. Transaction fees (USD) declined 38.7% QoQ from $1.1 million to $680,900, while native transaction fees declined 27.4% QoQ from 425,300 XRP to 308,700 XRP.

Network Analysis

In Q2, all measured network metrics declined except for total addresses, which increased 4.0% QoQ from 6.3 million to 6.5 million. Prior to this, all measured network metrics increased for two consecutive quarters, the only time this had occurred since Messari began covering the XRPL in Q1 2023.

Notably in Q2, average daily active addresses declined 41.2% QoQ to 75,200, while total new addresses fell 46.2% QoQ to 305,800, indicating a decline in both new and existing users. Still, year-over-year, these metrics are up 165.5% from 28,300 and 219.8% from 95,600, respectively.

Account creations and deletions are meaningful on the XRPL (unlike on most networks) as accounts require a 1 XRP deposit to be created, which can be reclaimed after deleting the account. As such, the XRPL’s account metrics are more reliable than other networks where account creations can easily be spammed/Sybiled at zero cost. Notably, the base reserve requirement was lowered from 10 XRP to 1 XRP in December 2024.

Addresses on the XRPL can contain destination tags, which enable a single address to receive and track XRP deposits for an arbitrary number of users. As a result, the number of daily active addresses is skewed downward, given that one account (e.g., a centralized exchange) could be responsible for a large number of users. It should be noted that a unique address is required for receiving tokens on most other networks, like ETH on Ethereum or BTC on Bitcoin.

For the fifth consecutive quarter, active receiver addresses exceeded active sender addresses on the XRPL. Average daily receivers declined 40.6% QoQ from 121,100 to 72,000, while average daily senders decreased 33.8% from 33,100 to 21,900. The active recipient metric is determined by the number of addresses that receive a transfer or other transaction. When recipients outpace senders, it indicates that more previously inactive wallets are receiving tokens distributed by senders than there are senders distributing those tokens. One common reason for this dynamic is airdrops, which are a token distribution strategy to reward and engage community members. In June, Midnight, a privacy-focused sidechain in the Cardano ecosystem, completed the snapshot for its NIGHT token airdrop, which XRPL addresses could qualify for by holding more than $100 worth of XRP. Airdrops are more practical on networks with low transaction fees, such as the XRPL, or networks that enable batch transactions.

In Q2, average total daily transactions decreased 20% QoQ to 1.6 million. The total daily transactions metric includes 57 different transaction types, such as payments, escrow creations, NFT burns, and account deletions.

In each of the last five quarters, Payment and OfferCreate have represented the vast majority of transactions on the XRP Ledger. Payment represents a transfer of value from one account to another, while OfferCreate submits an order to exchange cryptoassets. Notably, this transaction type only creates an “Order” on the order book and does not necessarily facilitate an exchange unless it completes an existing open Order. OfferCreate initiates a DEX limit order, and Offer objects represent bids/asks on the order book. Offers are consumed to process transactions such as Payment and OfferCancel (triggered manually or by expirations). If an Offer is only partially consumed by a transaction, a new Offer is created with the remainder of the original, similar to a UTXO. An Offer can be canceled by the OfferCancel transaction. Trust Lines are structures for holding tokens that protect accounts from being sent unwanted tokens, and the TrustSet transaction is used to open or close those Trust Lines.

After declining 36% in Q1, Payment transactions decreased 12.4% QoQ to 981,400. Historically, for smaller activity spikes, the difference between the active recipient and sender addresses has been largely due to centralized exchanges and custodians using destination tags and sending Payment transactions. Centralized exchanges and custodians mostly use the Payment transaction type for deposits and withdrawals. As such, the Payment transaction type has consistently had more receiving addresses than sending addresses. In addition, users typically prefer creating wallets on centralized solutions for easy access to the initial XRP required to create a self-custody wallet. After acquiring their initial XRP, many users withdraw to their self-custody wallets, resulting in fewer active senders and many active receivers.

Payments exceeded OfferCreates for the sixth consecutive quarter, with Payments' share of the overall transaction count increasing to 60.2% (+9.5% QoQ), while OfferCreates’ share declined to 29.6% (-8.6% QoQ). Prior to Q1 2024, OfferCreate was historically the most common transaction type. Notably, OracleSet, which creates or updates an existing price oracle, was the fifth most common transaction type in Q2, accounting for 1.0% of the overall transaction count. Price Oracles were enabled on the XRPL in November 2024 for pricing wrapped/bridged assets. Anyone can now call OracleSet to create or update an existing price oracle or OracleDelete to delete an existing price oracle.

In April, Band Protocol released its price feeds for WBTC, RLUSD, USDT, and USDC on the XRPL, in addition to ETH, BTC, and XRP. Band Protocol and DIA previously integrated with the XRPL in December 2024. With oracles enabled, the get aggregate price API call aggregates the price of an asset from all live oracles while discarding any outliers. The “Other” category of transactions includes transaction types for NFTs, escrows, multisigs, setting signer keys, and more. These transaction types are covered in depth in the Ecosystem Overview section.

DEX

CLOB

A built-in central limit order book (CLOB) processes exchanges on the XRPL for fungible tokens (also called Issued Currencies or simply tokens). This CLOB has been part of the XRPL since its inception and comes with the benefit of fewer trust assumptions and consolidated liquidity, rather than the inherent vulnerabilities of smart contracts. The majority of transactions come from the native CLOB. Although there is only one CLOB, there are many marketplaces acting as gateways that facilitate access. Gateways, also known as marketplaces, all share liquidity and provide a viable user interface for the average user. At the end of Q2, the top three gateways by volume facilitated were XPMarket, First Ledger, and Magnetic.

AMM

In addition to the existing CLOB, an automated market maker (AMM) was voted into the protocol in March of 2024, as detailed by the XLS-30 standard. All prominent DEXs (First Ledger, XP Market, MagneticX, Sologenic, etc) and newer platforms, such as Orchestra Finance and Moai Finance, have integrated. AMMs function through liquidity pools that algorithmically price assets rather than creating offers of preset specifications. Liquidity pools allow holders to earn a share of trade fees on their tokens by offering them as liquidity. Importantly, orders can be partially routed through the AMM and partially through the CLOB, as both work together as part of the DEX.

Servers

Nodes and validators, known as servers, all run the same client software: rippled. Anyone can run a node to maintain a local copy of the ledger, relay transactions, and provide access to the ledger. PoA requires each node to set a list of trusted nodes, which it will rely on for consensus. This list of trusted nodes is known as a unique node list (UNL) and determines the validator set that participates in XRPL’s PoA consensus.

Over 58% of nodes have upgraded to V2.5.0 since its release in June. As of the end of Q2, the XRPL is supported by 1,008 nodes and 187 validators. Nodes increased from 947, and validators decreased from 203 since the end of Q1 2025. Notably, on April 21, a Ripple employee was phished for their credentials, which were used to access the npm package repository for the xrpl library to publish malicious code designed to capture information used to assemble an XRPL private key. Those that had installed npm version 2.14.2 and 4.21-4.2.4 of xrpl.js were advised to assume their private keys were compromised and follow instructions to complete a key rotation. The attack was identified and mitigated on April 22, with 2FA enabled for all users with access to the library.

XRPL servers participate in federated consensus as part of the XRPL’s Proof-of-Association (PoA) consensus mechanism. Validators do not stake tokens or receive financial rewards. Instead, the system is based on trust between nodes. Each node sets a list of trusted nodes, known as a unique node list (UNL). Additionally, the Negative UNL is a feature that adjusts servers' “effective UNLs” based on which validators are currently online and operational. The UNLModify transaction, which was called an average of 5.4 times per day in Q2, marks a change in the Negative UNL, indicating that a trusted validator has gone offline or come back online.

Ecosystem Analysis

Although the XRPL’s ecosystem hosts many of the same features as programmable settlement networks, such as Ethereum, Solana, and Cardano, the XRPL does not natively support smart contracts. However, in September 2024, Ripple, along with the broader XRP community, announced its intent to introduce native smart contracts on the XRPL via an upcoming XLS proposal. The first step in this effort is the introduction of Extensions, a feature that allows developers to attach code to existing XRPL primitives to enhance their functionality without entirely new smart contracts. This will enable permissionless customization of XRPL’s built-in features such as escrows, NFTs, authorized trustlines, payment channels, the DEX, and AMM.

The first extension is “Smart Escrows,” which will allow developers to write custom release conditions requiring a notary account, credentials, or other means to unlock an escrow. Smart Escrow release is targeted for Q4, as is a full Smart Contract devnet following the release of Smart Escrows. Separately, an amendment to enable Token Escrows (XLS-85) was released as part of Rippled V2.5.0 in June, but has yet to be enabled.

Historically, arbitrary smart contracts have not been enabled on the XRPL base layer as a design choice to ensure maximum security, performance, and stability. Instead, ecosystem artifacts – such as a DEX and Issued Currencies – are natively built into the protocol. The XRPL supports multiple assets through tokens (also called Issued Currencies or IOUs). They are onchain representations of arbitrary currencies, commodities, units, etc.

Issued Currencies

The total market cap of fungible tokens, known as Issued Currencies, increased 35.7% QoQ to $382.0 million. This growth can be attributed to the increase in market cap of all top issued currencies on the XRPL, particularly Ripple’s USD-pegged stablecoin RLUSD, whose market cap increased 154.4% QoQ from $25.9 million to $65.9 million. Last quarter, the total market cap of Issued Currencies increased only 6.5% to $281.5 million. This modest increase was due to RLUSD’s 30% QoQ market cap increase from $6.4 million to $25.9 million, outweighing declines in memecoins, which previously surged in Q4 2024.

Notably, XPMarket, the provider of Issued Currencies market cap data, excludes wallets that hold more than 5% of a token’s total supply from the circulating supply used to calculate a token’s market cap, unless the founding team contacts XPMarket manually to justify the wallet’s holdings. 92.1

There are more than 30,000 listed assets on the XRPL, but the top token, SOLO, accounted for 24.1% of the total market cap at the close of Q1, down from 32.0% of the total market cap at the close of Q1. Combined, the top five tokens accounted for more than 57% of the total market cap, up slightly from 56% at the close of Q1. The top tokens on the XRPL by market cap at the close of Q1, according to XP Market were as follows:

• Sologenic (SOLO) had a market cap of $91.3 million (+0.8% QoQ) and 218,900 holders (-0.1% QoQ). SOLO is primarily used to pay transaction fees on the Sologenic gateway.
• Ripple USD (RLUSD) had a market cap of $65.9 million (+154.4% QoQ) and 33,400 holders (+3.2% QoQ). RLUSD is Ripple’s USD-pegged stablecoin launched on both the XRPL and Ethereum backed entirely by U.S. dollar deposits, short-term U.S. treasuries, and “other cash equivalents," with monthly third-party attestations.
• Fuzzybear (FUZZY) had a market cap of $26.2 million (+1,039.1% QoQ) and 4,000 holders (+298.0% QoQ). FUZZY is a memecoin on the XRPL.
• Bitstamp BTC (BTC) had a market cap of $19.9 million (+25.2% QoQ) and 4,370 holders (+0.4% QoQ). Bitstamp BTC is a wrapped version of Bitcoin provided by Bitstamp.
• Coreum (CORE) had a market cap of $15.2 million (+3.4% QoQ) and 65,600 (-2.2% QoQ). CORE is the native token of the Coreum sidechain, which was also developed by the Sologenic team.

Trust Lines are structures in the XRP Ledger for holding fungible tokens and enforce the XRPL’s rule that someone cannot be forced to hold a token they don’t want. As such, Trust Lines make metrics around token behavior on the XRPL more reliable. While an account’s first two trustlines are free, thereafter the XRPL requires a lockup of 0.2 XRP (owner reserve) for each object, such as an issued currency, that the address owns. A base reserve of 2 XRP is also required to create an address. Notably, in December 2024, the base reserve requirement was lowered from 10 XRP to 1 XRP, and the owner reserve from 2 XRP to 0.2 XRP. These requirements make it expensive to enact a Sybil attack on XRPL metrics, such as the number of holders. For this reason, the number of holders is a reliable metric of a token’s adoption on the XRPL. The metric is especially relevant for fungible tokens, which have much higher supplies than NFTs.

Axelar, a full-stack interoperability protocol (i.e., a crypto overlay network), integrated the XRPL at the end of June alongside the launch of the XRPL EVM Sidechain, connecting the XRPL ecosystem to 60+ networks, including the Ethereum and Cosmos ecosystems. Additionally, Wormhole announced a partnership with Ripple to integrate its crosschain messaging infrastructure with both the XRPL and XRPL EVM Sidechain, enabling developers to transfer XRPL assets across more than 35 supported chains. These integrations make it easier to source liquidity from many of the highest-TVL networks.

DEX (CLOB and AMM)

Average daily CLOB volume of fungible Issued Currencies decreased 40.4% QoQ from $13.7 million to $8.2 million. Still, the average daily amount of CLOB trades increased by 76.3% from 638,800 to an all-time high of 1.1 million, possibly due to increased memecoin trading activity. Average daily CLOB traders decreased 29.2% QoQ to 8,100. First Ledger, a Telegram trading bot developed by the team behind xrp.cafe, is the leading DEX (i.e., the leading gateway to the native DEX) on the XRPL by trading volume facilitated. Other prominent DEXs (gateways) include XPMarket, Sologenic, and MagneticX.

After peaking on Nov. 30, 2024, with $60.5 million in volume, daily AMM volume steadily declined with successive lower highs in December 2024, Q1, and Q2. As a result, average daily AMM volume decreased 54.1% QoQ from $4.5 million in Q1 to $2.1 million in Q1. Nonetheless, daily AMM volume appeared to bottom in May, with a daily average of $1.7 million that month, followed by a daily average of $2.6 million in June.

Notably, XRP Ledger’s AMM design includes a mechanism that allows the liquidity providers of a respective liquidity pool to bid LP tokens for an auction slot, which grants a discount on trading fees for a 24-hour period. This mechanism is intended to incentivize the account holding the auction slot for a given liquidity pool to keep prices in balance with external markets. Liquidity on the AMM is shared across all DEXs (gateways), just like with the CLOB.

In Q2, CLOB volume exceeded NFT volume by 125x ($740.7 million vs $5.8 million), the third consecutive quarter CLOB volume exceeded NFT volume by at least 90x. This sustained trend on the XRPL matches the wider trend across other major crypto networks, where fungible token trading volumes are exponentially larger than non-fungible (NFT) trading volumes.

NFTs

On the XRPL, NFTs are built into the core protocol and do not require smart contracts for creation or transfers, like Issued Currencies (also known as native tokens). NFTs were standardized by XLS-20 in October 2022, bringing benefits such as royalties and anti-spam features. These features help users not only avoid unwanted tokens but also help them stay legally compliant by avoiding specific tokens and smart contracts that have been made illegal within specific regions.

In June, the DynamicNFT amendment (XLS-46) was enabled, adding functionality for mutable NFTs via a new transaction type called NFTokenModify, which modifies an NFT’s metadata after its creation. This broadens uses cases for NFTs on the XRPL beyond immutable art or collectibles to gaming (in-game assets can gain new abilities), identity (identity tokens can update information), smart ticketing (event tickets can reflect status changes), and more.

In Q2, daily average total NFT transactions increased 226.9% QoQ from 15,400 to 50,400, driven by a 10x QoQ increase in daily average NFT mint transactions from 3,400 to 37,800. Transaction counts for other NFT transaction types were relatively flat QoQ.

After a lull in Q1 2025, NFTokenMint returned as the most common transaction type in Q2 2025, like it did in Q4 2024 when it had a large spike in mint activity. As of the end of Q2, nearly 13.5 million total NFTs have been minted with the XLS-20 standard. Notably, 3.4 million of those mints came in Q2 2023, 1.8 million in Q4 2024, and 3.4 million in Q4 2023.

Stablecoins and Wrapped Assets

Ripple’s USD-pegged stablecoin RLUSD closed Q2 with a combined market cap of $455.2 million on the XRPL and Ethereum, according to RWA.xyz. RLUSD closed Q2 with a market cap of $65.9 million on the XRPL (+49.4% QoQ), making it the network’s largest stablecoin.

Behind RLUSD and Bitstamp BTC (referenced above), the top stablecoins and wrapped tokens on the XRPL by market cap at the close of Q2 (according to XPMarket) were as follows:

• Gatehub Fifth (ETH): $8.7 million market cap (+27.9% QoQ) and 25,960 holders (flat QoQ)
• Ripple Fox CNY: $5.6 million market cap (-5.1% QoQ) and 11,880 holders (flat QoQ)
• USDC: $3.8 million market cap (launched June 12) and 509 holders
• Gatehub USD: $3.7 million market cap (-9.7% QoQ) and 20,130 holders (flat QoQ)
• Bitstamp USD: $2.8 million market cap (-28.2%) and 7,320 holders (flat QoQ)

Historically, stablecoins on XRPL have not seen the adoption of major stablecoins on other networks. For example, Ethereum, TRON, Solana, and BNB Smart Chain closed Q2 with stablecoin market caps of $131.2 billion, $78.9 billion, $9.6 billion, and $7.4 billion, respectively. For added context, USDT and USDC closed Q2 with market caps of $157.6 billion (+9.4% QoQ) and $61.7 billion (+2.6% QoQ) across all networks on which they are supported.

However, following the launch of RLUSD in December 2024, and in anticipation of increasing adoption and regulatory clarity, such as the passage of the GENIUS Act in the U.S. on July 18, many stablecoin issuers have announced plans to launch, or launched, stablecoins on the XRPL.

In June 2025, Circle’s USDC, pegged 1:1 to the US Dollar and fully backed by cash and cash equivalents, launched on the XRPL. In May, digital payment infrastructure provider StraitsX launched XSGD, its Singapore dollar-backed stablecoin, while Schuman Financial’s fully euro-backed and redeemable EURØP became the first MiCA-compliant euro stablecoin on the XRP Ledger. Additionally, Braza Group launched USDB, pegged 1:1 to the US Dollar and backed fully by US and Brazilian government bonds, and BBRL, pegged to the Brazilian Real.. Braza Group also plans to launch BBRL, pegged to the Brazilian Real. SG-Forge also plans to launch its EURCV stablecoin.

A key value proposition for all regulatorily compliant assets on the XRPL, like stablecoins, is the network’s built-in compliance features. For example, token issuers can enable Clawback, which allows the issuer to recover issued tokens from an account. This enables the token issuer to have the same capacity to recover funds as a legacy financial institution if a regulator ordered them to do so. With the AMM Clawback amendment enabled in January, assets with Clawback enabled can now trade on the AMM as clawback from liquidity pools is now supported. These continued updates to make DeFi regulatorily compliant at the base level make the XRPL increasingly attractive for institutions.

Other notable updates for RLUSD in Q2 include Ripple’s integration of RLUSD into its cross-border payments system, Ripple Payments, AEON’s partnership with Ripple to integrate RLUSD into its payments platform, the Dubai Financial Services Authority (DFSA)’s approval of RLUSD as an approved crypto token, Ripple’s selection of BNY as RLUSD’s primary custodian, and Kraken’s launch of trading for the token. Other platforms to integrate RLUSD in Q2 include Gemini, Banxa, Euler, Bitmex, and Alchemy Pay, among others.

Finally, Axelar, a full-stack interoperability protocol (i.e., a crypto overlay network), integrated the XRPL at the end of June alongside the launch of the XRPL EVM Sidechain, connecting the XRPL ecosystem to 60+ networks, including the Ethereum and Cosmos ecosystems. Additionally, Wormhole announced a partnership with Ripple to integrate its crosschain messaging infrastructure with both the XRPL and XRPL EVM Sidechain, enabling developers to transfer XRPL assets across more than 35 supported chains. These integrations make it easier to source liquidity from many of the highest-TVL networks.

RWAs

In March, real-world asset (RWA) analytics platform RWA.XYZ integrated the XRPL, allowing users to see key metrics regarding RWAs issued on the network. To date, 13 RWAs have been integrated onto RWA.XYZ on the XRPL, though more integrations are planned.

UK-regulated Archax provides access to a number of RWAs for professional investors on the XRPL, including tokenized stock of market infrastructure service provider Montis Group Limited (MGL), and UK asset manager abrdn’s £3.8 billion LUX money market fund via AAULF (US Dollar Fund) and AAELF (Euro fund).

Other notable RWAs include:

• Ondo Short-Term US Government Bond Fund (OUSG): Ondo’s OUSG tokenized treasury fund. Qualified Purchasers and institutions can convert in and out of OUSG using RLUSD.
• Digital Commercial Paper (DCP): DCP is a fixed-income asset secured by US Treasuries. It is administered by Guggenheim Treasury Services and issued and managed by Zeconomy.
• OpenEden US Treasury Bill Vault (TBILL): TBILL invests deposits in short-dated US Treasury bills and reverse repurchase agreements collateralized by US Treasuries. TBILL tokens can be minted from stablecoins, including RLUSD, and accrue interest earned proportionately. TBILL closed Q2 with a $5.1 million market cap (+1% QoQ) all held by Ripple, which initially invested $5 million and has committed to allocate a total of $10 million.

Many other RWAs from around the world are being made available on XRPL. Ctrl Alt has issued seven tokenized real estate properties on the XRPL, using Ripple’s custody infrastructure to store tokenized property title deeds, as part of the Dubai Land Department’s real estate tokenization project. In July, Mercado Bitcoin announced it will tokenize more than $200 million in permissioned RWAs, including fixed income and equity income instruments. VERT, a leading securitization and fund management firm in Brazil, also launched a platform on the XRPL for managing private credit operations, with the first live transaction a roughly $130 million Agribusiness Receivables Certificate (CRA). Last year, Aurum Equity Partners launched a $1 billion combined equity and debt tokenized fund on the XRPL via asset tokenization solution Zoniqx in October, while Elysia introduced its tokenized U.S. Treasury bills in December.

Adjacent to RWAs, the XRPL has also been explored as a tool for other institutional products. Ripple is the leading company developing technologies to leverage the XRPL for institutional and government use cases. The company is focused on using XRP and the XRPL to drive its On-Demand Liquidity service, custody, and tokenization initiatives.

Proper licensing and regulatory compliance for providers like Ripple is necessary for institutional and government adoption. In August, Ripple announced it was acquiring Rail, a stablecoin payments platform to integrate into Ripple Payments, which has more than 60 licenses to manage customer payment flows compliantly. In July, Ripple Founder Brad Garlinghouse confirmed Ripple had applied for a US national bank charter from the OCC. Prior to this, in April, Ripple announced it had acquired Hidden Road, making it the first crypto company to own and operate a global, multi-asset prime broker. Hidden Road will receive capital from Ripple to scale operations and expand market capacity. The company will migrate its post-trade operations to the XRP Ledger (XRPL) and adopt Ripple’s USD-backed stablecoin, RLUSD, as collateral across its brokerage services. Additionally, in March, Ripple became the first blockchain payments provider licensed by the Dubai Financial Services Authority (DFSA) to provide crypto payments and services in the Dubai International Finance Centre (DIFC).

Partnerships with institutions are also crucial to increasing adoption. In July, OpenPayd partnered with Ripple to support Ripple Payments into EUR and GBP. In February, Korean institution custody firm BDACS signed a strategic partnership with Ripple to provide custody infrastructure services for XRP, RLUSD, and other crypto assets, while Portuguese currency exchange provider Unicâmbio partnered with Ripple to support instant cross-border payments between Portugal and Brazil using Ripple Payments.

Sidechains

Multiple sidechains for the XRPL are either in development or were recently launched. Though a development timeline to introduce native smart contracts was announced in February 2025, to date, the XRPL has maintained minimal L1 complexity, offering increased programmability for both general and specific use cases on sidechains.

XRPL EVM Sidechain

The XRPL EVM Sidechain developed by Peersyst went live on June 30, providing the XRPL ecosystem access to EVM developers and functionality, with a general-purpose scope. XRP is the sidechain’s native token. It is built on the Cosmos SDK, specifically evmOS, and connects to the XRPL through the XRPL-EVM bridge powered by Axelar. Additionally, Wormhole announced a partnership with Ripple to integrate its crosschain messaging infrastructure with both the XRPL and XRPL EVM Sidechain, enabling developers to transfer XRPL assets across more than 35 supported chains. Crosschain transfers can currently be completed via Squid, while Grove is the sidechain’s first external RPC provider.

Coreum

Coreum (CORE) is an enterprise-grade L1 focused on interoperability and scalability. Coreum runs a WASM VM and is secured by a Bonded Proof-of-Stake (BPoS) consensus mechanism. CORE is used for transaction fees, staking, and validator rewards on Coreum.

Coreum was built by the Sologenic team to service user needs that could not be efficiently managed on the XRPL. The network's initial focus is on providing security tokenization, such as tokenized stocks from the NYSE and synthetic assets. Coreum is IBC integrated, granting access to all IBC-connected networks such as Cosmos Hub, Ethereum, and BNB Smart Chain. This integration has, by extension, brought interoperability with other networks, such as Solana, via Coreum's integration with Picasso Network.

Coreum’s V5 upgrade in April 2025 introduced its native orderbook DEX to mainnet. Advanced DEX functions are intended for release in the second half of 2025, including liquidity pools, multi-token swaps, and advanced order types, as is a gateway to tokenize and manage RWAs. Users can transfer between Coreum and the XRPL via the noncustodial Sologenic bridge.

Root Network

The Root Network sidechain is a blockchain-based NFT system with a focus on UX and metaverse, run by Futureverse. The Root Network is live in alpha, along with its bridge to XRPL and Ethereum, which was upgraded in September 2024 to allow two-way bridging of any token between the XRPL and The Root Network. Yield platform Doppler Finance is capitalizing on this development as it works towards releasing a lending protocol on The Root Network and a liquid staking token (LST) for the network’s native token ROOT.

Built from a Substrate fork, the Root Network uses XRP as the default gas token and has EVM support for smart contracts. The Root Network uses a delegated-Proof-of-Stake (dPoS) consensus mechanism (via the ROOT token). The protocol’s roadmap items are aligned with the XRPL, seeking to integrate the XLS-20 NFT standard and source liquidity from the XRPL DEX. Root Network’s FuturePass account abstraction solution provides users a familiar Web2 experience with social recovery, management of assets, and increased wallet flexibility.

Governance

The XRP Ledger (XRPL) uses an offchain governance process that allows community members and organizations to propose changes to the network. Users can submit proposals, otherwise known as Amendments, to the “XRPL-Standards” repository on the project’s GitHub. Block-producing validators on the network can then run versions of the XRPL source code that implement the proposed amendments. If 80.00% or more of the block-producing validators support the amended source code for two weeks, then it is implemented as the new source code for the network. Validators that do not support the amended source code are then blocked from contributing to consensus until they update to the newly changed version.

Recent notable approved amendments include AMM Clawback (January 2025), DynamicNFT (June 2025), Deep Freeze (May 2025), and Decentralized Identity (October 2024). Deep Freeze enables issuers to prohibit an account from both sending and receiving a token that it has issued. Prior to Deep Freeze, an issuer could use the Freeze feature to prevent an account from sending the token it issued, but could not prevent that same account from receiving that token. Decentralized Identity (DID) enables verifiable, self-sovereign digital identities on the XRPL for use cases in compliance, access control, digital signatures, and secure transactions. DID is essential for regulatorily compliant institutions, which require KYC and AML compliance to control access to tokenized RWAs and securities, and trading and lending platforms.

A number of other proposals that have yet to be approved build on DID, expanding compliance features. These include:

• Credentials (XLS-70): Designed to be a lightweight feature additive to the DID standard, Credentials are a framework for issuing, managing, and verifying user credentials directly on the XRP Ledger. This standard introduces a new ‘Credential’ ledger object along with new transaction types for creating, accepting, and deleting credentials.
• Permissioned Domains (XLS-80): Building on Credentials, XLS-80 introduces Permissioned Domains, allowing entities, such as institutions, to require specific credentials to access their offerings on the XRPL. This includes Know Your Customer (KYC) requirements. Notably, user privacy is maintained by verifying credentials without exposing personal information.
• Permissioned DEX (XLS-81): Ensures that only accounts with valid credentials can create or fill orders on a permissioned domain, allowing institutions to adhere to regulatory requirements such as Anti-Money Laundering (AML) and KYC rules.

Other notable proposals not discussed above that have yet to be approved include:

• Batch Transactions (XLS-56): Batch transactions enable grouping multiple actions into a single atomic transaction. This proposal would enable up to 8 actions per batch transaction. As an example, a user could submit up to eight offers for an asset at different prices, with different amounts of slippage, and where only the first successful offer succeeds.
• Permission Delegation (XLS-75): Enables account holders to delegate specific permissions to other accounts for flexible account management and automation
• Multi-Purpose Tokens (XLS-33): A proposal to introduce the multi-purpose token standard (MPT). MPT enables support for metadata to store parameters regarding an issued RWA, such as the maturity date of a tokenized bond. Coupled with the clawback function enabled in Q1 2024, the XRPL is continuing to add functionality to give regulatorily compliant token issuers more control.

Also, in April 2024, proposals were made to introduce a native lending protocol on the XRPL (XLS-66), whereby users could lend and borrow supported assets, such as XRP, wBTC, and wETH, using single-asset vaults (XLS-65). The single-asset vault will use credentials and permissioned domains for access control and support a number of compliance features, including account freezing, asset freezing, and clawback. Unlike overcollateralized lending protocols like Aave, the protocol is intended to offer onchain fixed-term and rate loans via offchain underwriting, risk management, and an insurance fund — a model akin to that implemented by TrueFi on Ethereum.

Other Notable Updates

In Q2, a number of additional events, updates, integrations, partnerships, and upgrades took place, enhancing the XRPL community, ecosystem, and the network’s overall utility.

• Leading crypto data analytics provider Dune integrated the XRPL.
• XRP Ledger Apex, the largest annual summit for the XRPL community, took place in June in Singapore and focused on institutional adoption. EasyA and Ripple held the largest XRPL hackathon ever before the conference began. Prior to this, the XRP Las Vegas conference took place in May.
• The team behind the Xrp.cafe NFT marketplace and First Ledger Telegram trading bot, launched Joey Wallet, an XRPL wallet.
• The recently formed XRP Ledger Foundation put out a call for new membership requests. Four founding members—XRPL Commons, XRPL Labs, Ripple, and XAO DAO—established the entity in November 2024, which replaces the previous XRPL Foundation, and controls key XRPL assets, such as the Unique Node List (UNL), GitHub repositories, social channels, and XRP trademarks.
• XAO DAO launched as an XRPL community DAO for XRPL governance and grant allocation.
• New squelching implementations were introduced to optimize the XRPL’s validator traffic as network activity increases. Base squelching suppresses duplicate traffic, while enhanced squelching reduces the volume of unique untrusted validator messages.
  

XRPL Community Support Programs

The XRPL is supported by a number of community support programs funded by Ripple’s commitment of 1 billion XRP in March 2022. These programs include the XRPL grants program established in May 2021 to support development on the XRPL and the XRPL Accelerator program, an accelerator for new and existing XRPL ecosystem projects. Other community support programs include XRPL Hackathons and the Aquarium Residency for developers offered by XRPL Commons. The RippleX Bug Bounty Program also pays bounties to individuals or groups that identify and report bugs in the rippled, xrpl.js, xrpl-py, and xrpl4j repositories.

The sixth cohort of the XRPL Accelerator kicked off in June in Singapore. The 12-week program runs through August and includes nine teams that can receive up to $200,000 USD in grant funding. The program is offered by Ripple Labs in partnership with Tenity, which in December announced its Tenity Inc Fund II to fund early-stage builders on the XRPL in Asia and Europe. In July, Tenity and Ripple announced the XRPL Accelerator will run twice annually in Singapore moving forward, starting in September. Additionally, XRPL grants program applications are currently available for the Brazil Fund, AI Fund, and Japan and Korea Fund, alongside rolling applications, which are open year-round. In June, Ripple announced a partnership with Web3 Salon as part of the XRPL Japan and Korea Fund to provide grants of up to $200,000 in the next year to projects in Japan building for use cases including DeFi, RWAs, and payments.

Closing Summary

Q2 and beyond were pivotal for the XRPL and its native asset XRP. XRP once again closed the quarter as the fourth largest crypto asset by market capitalization at $132.0 billion (+8.5% QoQ). In July, the SEC listing standards for crypto ETPs became public, revealing a requirement of at least six months of futures tracking before listing. XRP was listed on Coinbase’s Derivatives Exchange in April, paving the way for US spot ETF approval and listing in the fall.

With each new compliance feature like Decentralized Identity (DID) released on the XRPL, the network becomes more attractive for regulatorily-compliant financial institutions and asset issuers alike. Ripple’s USD-pegged stablecoin RLUSD closed Q2 with a market cap of $65.9 million on the XRPL (+49.4% QoQ), making it the network’s largest stablecoin. Multiple stablecoins also launched on the XRPL in Q2, including Braza Group’s USDB, Schuman Financial’s EURØP, and StratsX’s XSGD. Likewise, multiple new RWAs were issued, including Ondo’s OUSG tokenized treasury fund, Guggenheim’s Digital Commercial Paper, and tokenized real estate issued by Ctrl Alt, as the XRPL closed Q2 with an all-time high RWA market cap of $131.6 million.

Additionally, the XRPL EVM Sidechain went live in June, providing the XRPL ecosystem access to EVM developers and functionality, with a general-purpose scope. Moreover, Token Escrow was released as part of Rippled V2.5.0 in June, paving the way for Smart Escrow to be released in Q4 as the first step in a timeline to introduce native smart contracts on the XRPL. As amendments to enable regulatorily compliant institutions to adopt DeFi uses on the XRPL continue to be enabled, the network is primed for further growth in the second half of 2025 as institutional adoption increases, fueled by continued strategic partnerships and acquisitions.