XRP News Today: Ripple Exec Outlines XRPL's Role in Real-World Asset Tokenization

Ripple Senior Vice President Markus Infanger, head of RippleX, has outlined why the XRP Ledger (XRPL) is uniquely positioned for tokenizing real-world assets (RWA). In an August 12 blog post, Infanger argues that while Special Purpose Vehicles (SPVs) are currently the dominant model for wrapping traditional assets like treasuries and real estate, they are an interim solution rather than a long-term framework. He likens SPVs to "scaffolding," useful during the transition period as infrastructure and regulatory standards evolve [1].

Infanger envisions a future where assets are "born digital," with compliance enforced by code, settlement executed atomically, and liquidity composable across venues. This "native issuance" model, he claims, eliminates the need for intermediaries and token wrappers, streamlining the process and reducing operational complexity [1].

XRPL’s design is central to this vision. Infanger highlights several built-in features that make it a compelling platform for RWA tokenization. The ledger includes a native decentralized exchange (DEX), enabling token trading directly on-chain without external smart contracts. This simplifies execution and reduces dependencies [1]. Additionally, XRPL offers near-instant settlement with minimal transaction costs, a feature Infanger considers crucial for high-volume instruments such as tokenized T-bills or invoices [1].

The XLS-30 automated market maker (AMM) standard is another differentiator. It enables on-ledger liquidity pools that set prices algorithmically, providing continuous two-way pricing for RWA markets that traditionally rely on request-for-quote (RFQ) mechanisms [1]. Meanwhile, the proposed XLS-65 lending vault standard could streamline secured credit operations by defining borrowing and lending rules at the protocol level, enhancing transparency and auditability [1].

Infanger also emphasizes XRPL’s capacity for embedding compliance and custody workflows directly into asset lifecycles. Since exchange, settlement, and issuance operate within the base protocol, rule sets such as whitelists and transfer restrictions can be encoded into the asset’s smart logic, supporting regulatory alignment as the market scales [1].

An early example of this model in action is a pilot by Ctrl Alt in collaboration with Dubai’s land regulator to mint property ownership records on XRPL. The initiative aims to streamline property transfers, improve auditability, and integrate Ripple Custody for secure token storage [1].

Despite the promise of native issuance, Infanger acknowledges that SPVs will remain relevant in the near term. They offer a familiar legal framework that meets current regulatory expectations, enabling institutions to test operational readiness and satisfy auditors [1]. However, he sees SPVs as a transitional phase, much like the immobilization of paper certificates in the 1970s, which eventually paved the way for full dematerialization [1].

For institutions, the message is one of gradual evolution rather than disruption. Infanger encourages banks, asset managers, and treasurers to use SPVs where necessary but to design with native issuance in mind. A public, finance-focused ledger with built-in exchange, liquidity, and credit standards, he argues, can accelerate the path to a more integrated and efficient market [1].

Infanger’s vision underscores Ripple’s broader strategy to position XRPL as a foundational infrastructure layer for digital assets. By reducing the need for custom code and enabling on-ledger assets to function like traditional financial instruments, Ripple aims to facilitate a seamless transition from legacy systems to a tokenized future [1].

Source: [1] Ripple Exec on Why XRP Ledger Is ‘Uniquely Suited’ for Real World Asset Tokenization (https://www.coindesk.com/tech/2025/08/14/ripple-exec-on-why-xrp-ledger-is-uniquely-suited-for-real-world-asset-tokenization)