XRP's Value Shift: Tokenization to Lock 30% of Supply by 2025

Crypto commentator and XRP advocate All Things XRP recently shared a detailed post on X, presenting a compelling case for a significant shift in how XRP’s value should be perceived. The argument pivots away from the traditional focus on payments and instead highlights real-world asset (RWA) tokenization on the XRP Ledger (XRPL) as the primary long-term driver of XRP’s price.

This transition has the potential to radically alter the token’s supply and demand dynamics by permanently locking up large volumes of XRP. The post emphasizes that the real significance lies not in XRP’s movement as a transaction token but in how XRP is locked and removed from circulation in various mechanisms essential to tokenization. This forms the crux of the argument—that XRP is being taken “off the table” permanently and that this structural lock-up is the real catalyst for future price appreciation.

The process of tokenization involves converting tangible assets—such as real estate, bonds, or commodities—into digital tokens issued and managed on XRPL. These tokens are described as programmable, globally tradable, settled within 3–5 seconds, and transferred for an average cost of $0.0002. For example, a $1 million house can be tokenized into 1 million HOUSE tokens. Through XRPL’s decentralized infrastructure, users can purchase fractional shares, earn yield, and trade these tokens using XRP as the underlying asset.

The post describes three key mechanisms through which XRP is locked within the tokenization process. First, Automated Market Maker (AMM) pools hold XRP in smart contracts to enable liquidity for trading between token pairs such as XRP and tokenized real estate assets. This is identified as the most significant contributor to XRP lock-up. Second, XRP can be deposited as collateral in decentralized lending protocols. Although stablecoins like RLUSD may become prominent in these environments, All Things XRP argues that XRP will continue to play a central role, especially as decentralized finance expands on XRPL. Third, XRP is required in small amounts to open accounts and establish trust lines—specifically, 1 XRP per account and 0.2 XRP per trust line. While seemingly minor at the individual level, this demand becomes meaningful at scale.

A concrete example is offered involving the tokenization of a $1 million property, with an XRP/HOUSE AMM pool seeded with 24,390 XRP. As users enter the market and swap XRP for HOUSE tokens, more XRP enters the pool and remains locked. If replicated across 1,000 similar properties, this single-use case alone could result in 24.39 million XRP being locked.

The post cites projections from Ripple that place the total value of tokenized assets at $6 trillion by 2025. If XRPL captures just 10% of that market—$600 billion—then based on current mechanisms, approximately 17.58 billion XRP could be locked: 14.6 billion in amms, 2.9 billion in lending, and 20 million in reserves. This would represent over 30% of the current circulating supply of XRP. Looking ahead, the post extrapolates to 2033, when global tokenized assets could reach $18.9 trillion. If XRPL’s market share reaches 15%, approximately 28.37 billion XRP could be locked. That would amount to nearly half of the total circulating supply, fundamentally altering the token’s availability and market dynamics.

All Things XRP concludes that this phenomenon should not be seen as theoretical or speculative. It is instead presented as an inherent result of XRPL’s design. As more real-world assets are tokenized, more XRP is absorbed into the ecosystem and locked permanently. According to the post, this structural supply reduction constitutes a slow but inevitable supply shock that will support XRP’s price growth over time. The argument places XRP’s evolving utility in the context of broader financial infrastructure, asserting that the token’s long-term appreciation will be driven less by retail speculation or transactional volume and more by its embedded role in a growing global market for tokenized assets. The commentary ends by asserting that the payment narrative surrounding XRP is merely the beginning and that real-world asset tokenization is the true story behind the asset’s future trajectory.