Hidden XRP Utility Detailed by XRPL Dev During Expansion of Institutional DeFi

TLDR

• The podcast discussed XRP’s built-in role in liquidity and settlement on XRPL.
• Vet explained that XRPL launched with a native DEX and multi-asset support.
• XRP was described as the neutral settlement asset used across all XRPL functions.
• Autobridging was highlighted as a feature that improves pricing by routing trades through XRP.
• The conversation noted that permissioned DEX upgrades support institutional DeFi adoption.

XRP Ledger (XRPL) activity continues to draw attention as a recent podcast outlined XRP’s internal role in liquidity, settlement, and emerging institutional DeFi, and the discussion emphasized how core protocol features shape growing utility across the network.

XRPL’s Built-In Architecture

The episode featured XRPL validator Vet and host Krippenreiter as they discussed XRP’s role within the ledger’s design, and Vet stated that XRP supports liquidity across multiple functions on-chain. He explained that the XRP Ledger launched with a native DEX, multi-asset support, and token issuance, and he added that this framework enabled early stablecoin and asset tokenization. Vet argued that XRP sits at the center of these systems, and he said this structure continues to guide current development.

Vet said the network operates as a multi-asset ledger rather than a single-asset chain, and he noted that the architecture supports various currency types. He stated that this design helps users trade assets directly on-chain, and he said the system does not require external smart contracts. Vet added that this setup creates a unified environment for payments and foreign exchange.

He explained that these functions existed from launch, and he said they help maintain consistent transaction paths, and he added that XRP remains the core settlement asset within this framework. He noted that XRP works without trust lines, and he said this allows neutral settlement across all network features. Vet emphasized that this neutrality sets XRP apart from issued tokens.

XRP Utility and Autobridging on XRPL

Vet stated that XRP’s most misunderstood utility comes from its built-in role in routing liquidity, and he said every ledger transaction requires a small XRP fee. He added that these fees are burned and reduce supply, and he explained that this structure ties network usage to XRP demand. Vet also said that XRP sits “in the middle of everything” due to its settlement function.

He noted that autobridging supports this role because trades automatically route through XRP when it improves liquidity, and he said this feature helps traders access better pricing. Vet explained that a trade can move from a euro-backed token to XRP and then to a dollar-backed token, and he added that this helps address missing liquidity pairs. He said the process works on both public and permissioned DEX environments.

Vet added that bridging does not occur across public and permissioned markets, and he said each environment maintains its own liquidity paths. He stated that the mechanism still enhances price discovery, and he added that traders benefit from automated routing. Vet said XRP remains the asset that supports these flows.

XRPL and Expanding Institutional DeFi

Recent upgrades introduced permissioned DEX functions and credential tools on XRPL, and they aim to support regulated financial activity on-chain, and they align with moves by Ripple to expand institutional products. Vet mentioned that new stablecoin activity includes tokens like Ripple USD and Euro Convertible from Societe Generale Forge. He said more fiat-backed assets could increase FX demand.

He explained that these new assets drive interest in on-chain foreign exchange, and he said market makers may need to hold XRP to supply liquidity. Vet added that higher activity increases the need for efficient routing, and he said XRP supports these flows without external layers. He stated that the ledger’s native systems handle DEX operations directly.

Vet said that built-in features allow institutions to transact without depending on smart-contract platforms, and he noted that financial firms seek predictable settlement paths. He added that the ledger design addresses these needs, and he said new institutional tools continue to expand. Vet said that stablecoins and tokenized currencies remain active areas of development on XRPL.

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