XRP's Role in Global Financial Infrastructure: Tokenization as the Next Frontier in Cross-Border Payments

In the evolving landscape of global finance, XRP, the native token of the XRP Ledger (XRPL), has emerged as a pivotal player in redefining cross-border payments. While its role as a bridge asset for real-time settlements has already disrupted traditional systems like SWIFT, the tokenization of real-world assets (RWAs) on the XRP Ledger is now positioning XRP as a cornerstone of the next frontier in financial infrastructure. This analysis explores how XRP's dual utility-both as a liquidity tool and a tokenization platform-is reshaping cross-border transactions and unlocking new value for institutions and investors.

XRP: A Proven Solution for Cross-Border Payments

Ripple's On-Demand Liquidity (ODL) service has long leveraged XRP to enable near-instant cross-border transactions with settlement times of 3–5 seconds and fees as low as a fraction of a cent. This efficiency has attracted major financial institutions, including Santander, JPMorgan Chase, and American Express, which use XRP to eliminate the need for pre-funded nostro/vostro accounts-a practice that ties up over $27 trillion in global liquidity. By converting fiat to XRP for real-time transfers, ODL reduces operational costs and capital requirements, making it a compelling alternative to traditional systems that often take days to settle.

Ripple's expansion in 2025 further solidified its dominance. Partnerships with Japanese financial giants like Mizuho Bank and SMBC Nikko, coupled with the country's crypto-friendly regulatory reforms, have accelerated XRP's adoption in Asia. Meanwhile, Ripple's acquisition of firms like Hidden Road and Rail has expanded its infrastructure capabilities, enabling seamless integration with central banks and fintechs. These developments underscore XRP's role as a scalable, institutional-grade solution for cross-border payments.

Tokenization: Beyond Bridge Assets to Real-World Value

While XRP's utility as a bridge asset is well-documented, its potential as a tokenization platform is now gaining traction. The XRP Ledger's ability to process 1,500 transactions per second at minimal energy costs has made it an attractive choice for tokenizing RWAs such as real estate, treasuries, and commodities. For instance, in 2025, BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) tokenized U.S. treasuries on the XRP Ledger, attracting over $500 million in assets under management. This innovation allows institutions to access liquidity and fractional ownership of traditionally illiquid assets, democratizing access to global markets.

Tokenized real estate is another transformative use case. A New York-based luxury hotel was tokenized in 2025, enabling investors to purchase fractional ownership starting at $1,000. Such projects highlight how XRP's infrastructure can facilitate cross-border investments in physical assets, reducing barriers to entry for international markets. Similarly, SBI Holdings in Japan has leveraged Ripple's technology to process billions in remittances to Southeast Asia, demonstrating XRP's adaptability across diverse financial ecosystems.

Regulatory Progress and Institutional Confidence

XRP's growing adoption is also supported by regulatory clarity. The resolution of Ripple's long-standing SEC lawsuit in 2025 has bolstered institutional confidence, with XRP ETFs attracting $483 million in December 2025 despite a 15% price drop. This resilience reflects strong demand from investors seeking exposure to a digital asset with clear utility in financial infrastructure.

Moreover, the XRP Ledger's energy efficiency-100,000 times lower per transaction than Bitcoin- aligns with ESG priorities, making it appealing to sustainability-focused institutions. Ripple's alignment with global standards like ISO 20022 further enhances its credibility, ensuring interoperability with existing financial systems.

The Future: MPTs and CBDC Integration

Looking ahead, the introduction of Multi-Purpose Tokens (MPTs) on the XRP Ledger in 2025 has expanded its capabilities beyond payments into asset management. MPTs enable the creation of complex tokenized instruments, such as derivatives and structured products, opening new revenue streams for financial institutions.

Ripple is also positioning XRP as a bridge between Central Bank Digital Currencies (CBDCs). By facilitating seamless cross-border CBDC transactions, XRP could play a critical role in the global transition to digital currencies. This strategic alignment with central banks and regulators positions XRP as a foundational layer for the next generation of financial infrastructure.

Conclusion

XRP's journey from a bridge asset to a tokenization platform underscores its transformative potential in global finance. With its proven efficiency in cross-border payments, expanding use cases in RWA tokenization, and regulatory tailwinds, XRP is well-positioned to drive the next wave of innovation in financial infrastructure. For investors, the confluence of institutional adoption, technological advancements, and macroeconomic trends suggests that XRP's role in the global economy is far from reaching its peak.