Institutions Bet Big on XRP as Real Estate Tokenization Takes Off

XRP, the digital asset underpinning the XRP Ledger, has experienced an 8% price rebound in recent weeks, driven by a combination of whale activity, institutional adoption, and regulatory clarity. Analysts attribute the surge to renewed confidence in the token’s utility following the resolution of the U.S. Securities and Exchange Commission (SEC) lawsuit in August 2025. The court’s ruling clarified that XRP sales on public exchanges are not securities, removing a key legal barrier to institutional participationXRP Institutional Adoption Gains Momentum After SEC Clarity^[4]. This development has spurred increased on-chain activity, with XRP’s dormancy rate—measured as the percentage of inactive supply—now lower than that of Bitcoin and Ethereum. Only 4.1% of XRP’s circulating supply has remained dormant for over two years, compared to over 20% for Bitcoin.

The XRP Ledger’s growing institutional adoption is being fueled by real estate tokenization initiatives. RealFI, a project leveraging the XRP Ledger, has completed the first phase of its plan to tokenize the $654.39 trillion global real estate marketXRP Ledger to Begin $654.39 Trillion Real Estate Tokenization with RealFI^[1]. The platform’s native $REAL token enables real-time, borderless transactions for property purchases and rentals, with smart contracts ensuring compliance and verifiable ownership. Similarly, Dubai’s Real Estate Tokenization Project, supported by the Dubai Land Department and Dubai Virtual Assets Regulatory Authority, is advancing blockchain-based title deeds, positioning the region as a global leader in real-world asset (RWA) tokenizationFrom Vision to Realization: Tokenizing Real Estate on the XRP Ledger^[2]. These initiatives highlight the XRP Ledger’s role in bridging traditional real estate markets with decentralized finance.

Institutional interest in XRP has further intensified as financial firms explore its utility in cross-border payments and liquidity management. Ripple’s On-Demand Liquidity (ODL) service processed $1.3 trillion in transactions in Q2 2025, reducing banks’ operational costs by 60-90%XRP Has a Lower Dormancy Rate than Bitcoin and Ethereum: Report^[7]. Partnerships with entities like SBI Holdings, Santander, and Fubon Bank have expanded XRP’s reach across Asia, Latin America, and the Middle East. The recent approval of the first U.S. spot XRP ETF, the REX-Osprey XRPR ETF, has also attracted over $1.1 billion in institutional purchases in 2025XRP Has a Lower Dormancy Rate than Bitcoin and Ethereum: Report^[7], signaling broader market acceptance.

Analysts project continued momentum for XRP, with price targets ranging from $3.00 to $189 by 2033, depending on adoption rates and market conditionsHere’s Why Real Estate Could Be The Key to Unlocking XRP Next Big Rally^[3]. Brad Kimes, a financial analyst, forecasts $10.40 by 2026 and $54 by 2029, assuming XRP captures a significant share of the $18.9 trillion tokenization marketHere’s Why Real Estate Could Be The Key to Unlocking XRP Next Big Rally^[3]. Technical indicators support a bullish outlook, with XRP’s trading volume and on-chain liquidity improving as large sell orders declineXRP Institutional Adoption Gains Momentum After SEC Clarity^[4]. Additionally, the launch of liquid-staking products like mXRP, which offers 6-8% yields, has incentivized holders to lock in assets while accessing DeFi opportunities.

Despite these positives, challenges persist. Competition from stablecoins and Central Bank Digital Currencies (CBDCs) could limit XRP’s long-term utility, particularly in corridors where volatility is undesirableXRP Has a Lower Dormancy Rate than Bitcoin and Ethereum: Report^[7]. Regulatory uncertainty in select markets and the token’s reliance on Ripple’s operational success remain risks. However, the XRP Ledger’s low dormancy rate and growing institutional infrastructure suggest a resilient ecosystem. With Ripple pursuing a U.S. banking charter and expanding its cross-border payment corridors, XRP’s trajectory will likely remain tied to its ability to scale real-world use cases.