The burgeoning market for tokenized US Treasuries, now nearing $11 billion, is shifting its focus from mere issuance to the critical aspects of distribution, utility, and integrated financial workflows. In this evolving landscape, the XRP Ledger (XRPL) is making a concerted effort to establish itself as a significant venue, drawing attention to its potential to host these innovative financial instruments.
XRPL's Strategic Moves in Tokenized Treasuries
XRPL has recently signaled its ambitions with two notable developments. Firstly, Aviva Investors, a major asset manager, announced a partnership with Ripple to tokenize traditional fund structures on the XRPL, framing tokenization as a move towards "large-scale production" in the coming decade. This institutional endorsement is a significant credibility boost. Secondly, OpenEden's TBILL token, backed by short-dated US Treasuries, shows a substantial portion of its circulating supply (approximately 62.6%) residing on XRPL, outstripping its presence on Ethereum. These events suggest XRPL is aiming to move beyond just an issuance platform to become a central hub for real-world assets (RWAs).
The Credibility Test: Usage Gaps and Competing Infrastructures
Despite initial successes in attracting token supply and institutional partnerships, XRPL faces a crucial test of its actual utility. While OpenEden's TBILL token supply largely sits on XRPL, its monthly transfer volume there is strikingly low—a mere $200 compared to millions on Ethereum and Arbitrum. This disparity highlights a significant gap: XRPL is currently acting more as a custodial or parking venue than an active trading or settlement hub. The ultimate measure of a "venue" lies in financial utility, particularly its role in settlement and collateral flows, an area where Ethereum, with its mature on-chain liquidity and collateral plumbing, holds a distinct advantage. Ethereum's ecosystem, including Layer 2 solutions, is already the default choice for institutions building settlement and lending flows, as evidenced by integrations like BlackRock's BUIDL becoming tradable on UniswapX.
XRPL's Path Forward: Regulated Rails vs. DeFi Composability
XRPL's current strategy appears to prioritize "regulated distribution" and operational simplicity, leveraging its built-in compliance tools and near-instant settlement—a proposition that might appeal to institutions seeking predictable execution over deep DeFi composability. However, the true durability of a venue for tokenized treasuries hinges on its ability to support active trading against stablecoins and serve as viable collateral in the broader financial system. The Bank of England and the European Central Bank are actively exploring tokenized assets as collateral, underscoring the importance of established infrastructure. The coming months will be critical for XRPL to demonstrate if it can bridge the gap between asset issuance and active usage. A material increase in treasury-token transfer volumes and a progression of Aviva's commitment from intent to a live, measurable product will determine if XRPL is truly building a new financial venue or merely hosting another issuance narrative, while the bulk of activity continues on Ethereum and its Layer 2s.
