XRP Ledger Holds Majority of Tokenized Treasuries, Trading Lags Behind

TLDR

• XRP Ledger holds approximately 63% of the tokenized U.S. Treasury bill supply.
• Despite its dominant position in tokenized Treasury supply, XRP Ledger faces limited trading activity.
• Ethereum and layer-2 networks remain the primary platforms for trading tokenized U.S. Treasuries.
• Aviva Investors has partnered with Ripple to tokenize traditional fund structures on XRP Ledger.
• OpenEden’s TBILL token is mostly issued on XRPL but experiences minimal on-chain activity compared to other networks.

The XRP Ledger (XRPL) now holds about 63% of the tokenized U.S. Treasury bill supply. However, trading activity for these tokens is still primarily on Ethereum and layer-2 networks. Despite its growing share of the tokenized U.S. Treasury market, XRPL’s role in trading and settlement remains uncertain.

Tokenized Treasury Supply Dominates on XRP Ledger

XRPL has emerged as the primary ledger for tokenized U.S. Treasuries, holding a vast majority of the tokenized Treasury bill supply. Data from RWA.xyz shows that about 63% of tokenized Treasuries are issued and held on the XRPL network. While the supply is concentrated on XRPL, the transfer volume for these tokens is limited when compared to Ethereum and layer-2 networks.

The divide between token issuance and trading raises questions about XRPL’s ability to compete with Ethereum and layer-2 networks, where liquidity for these assets is more developed. Blockchain data also indicates that although tokens are issued and stored on XRPL, they are mainly moved and used on Ethereum-based platforms for trading. This trend suggests that XRPL’s role is more focused on token issuance rather than active market participation.

Recent developments show XRPL’s potential to host tokenized real-world assets, especially in the realm of traditional fund structures. Aviva Investors has partnered with Ripple to tokenize traditional fund structures on XRPL. The partnership, a multi-year project, aims to transition tokenization from experimental phases to large-scale operations in the coming decade.

Despite this partnership, the asset manager has yet to launch any live tokenized fund products. While XRP Ledger’s built-in compliance tools and near-instant settlement capabilities make it an attractive option for regulated institutions, it still faces stiff competition from Ethereum and layer-2 networks, which provide better liquidity.

Tokenized U.S. Treasuries Show Limited Activity on XRPL

While XRPL holds the majority of tokenized U.S. Treasury tokens, these assets are not actively traded on the network. OpenEden’s TBILL token, a vault token backed by short-dated U.S. Treasuries, maintains most of its circulating supply on XRPL. However, on-chain data reveals that its transfer volume on XRPL is minimal compared to Ethereum and other layer-2 networks.

This limited on-chain activity highlights XRPL’s struggle to capture a significant share of the active trading market. With Ethereum and layer-2 networks hosting the majority of transactions for tokenized Treasuries, XRPL’s role in active trading remains unclear.

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