Institutional interest in blockchain-based markets is rising, yet xrp ledger tokenization faces a critical test as tokenized Treasuries sit largely inactive on XRPL.
XRPL dominates supply of tokenized U.S. Treasuries
The XRP Ledger currently holds approximately 63% of tokenized U.S. Treasury bill token supply, according to blockchain data from RWA.xyz. However, most of the active trading and transfer volume for these digital securities still takes place on Ethereum and various layer-2 networks, underscoring a widening gap between issuance and usage.
This distribution imbalance highlights an emerging divide across tokenized US Treasuries: one set of chains is being used as primary issuance venues, while other networks function as the main trading rails. Moreover, industry observers say this split is shaping how institutional investors evaluate settlement infrastructure and liquidity access across competing blockchains.
Aviva Investors and Ripple target large-scale fund tokenization
Two recent developments have positioned XRPL as a serious contender for tokenized Treasury markets and broader real-world asset issuance. In a notable move, Aviva Investors announced a partnership with Ripple to tokenize traditional fund structures on the ledger, describing the strategy as a multi-year initiative that could unfold over the next decade.
The aviva ripple partnership frames tokenization as moving from experimental pilots into large-scale production systems. However, according to the announcement, the focus is on traditional fund structures rather than exclusively Treasury bills, and the firms have not yet launched a live tokenized fund product with a formal prospectus and defined eligible investor base.
OpenEden’s TBILL sits on XRPL but trades elsewhere
Alongside the Aviva initiative, OpenEden’s TBILL vault token has become another pillar of XRPL’s real-world asset story. TBILL is a vault token backed 1:1 by short-dated U.S. Treasuries, providing exposure to government securities through a tokenized wrapper. According to RWA.xyz, a majority of TBILL’s circulating supply is now held on the XRP Ledger.
However, transfer volume data tells a different story. Activity for TBILL on XRPL remains limited compared to Ethereum and select layer-2 networks, based on the same dataset. That said, this pattern suggests a structural model where tokens are issued and custodied on XRPL but moved, traded, and utilized across other chains with deeper ethereum layer two liquidity and established collateral rails.
How tokenized Treasuries and compliance shape network choice
Tokenized U.S. Treasuries generally refer to tokenized fund shares or vault tokens backed by short-term U.S. government securities that can be held and transferred on blockchain networks. The sector has expanded as institutional investors test blockchain-based stablecoin settlement flows and new forms of capital markets infrastructure.
XRPL, for its part, has emphasized built-in compliance tooling and near-instant settlement in pitches to institutional clients, according to public statements from Ripple and partner firms. Moreover, that positioning is aimed squarely at regulated distribution channels rather than decentralized finance composability, which remains a core advantage on Ethereum and its scaling networks.
Stablecoins and Treasuries on XRPL
Stablecoin transfer activity on XRPL has grown in parallel with Treasury token initiatives, according to on-chain metrics. The combination of stablecoins for settlement and tokenized Treasuries for yield is seen as a potential operating model for institutional users that want integrated payment and investment rails on a single ledger.
Market participants note that Ethereum and its layer-2 ecosystem still host the most mature on-chain liquidity infrastructure for tokenized assets. In practice, tokenized Treasuries on those networks can be swapped against stablecoins, routed through institutional market makers, and integrated into lending workflows at significantly larger scale than is currently possible on XRPL.
Collateral, settlement, and evolving institutional workflows
According to industry analysts, the market for blockchain-based Treasuries is steadily evolving toward use cases in collateral management and settlement across the broader financial system. Institutions designing lending and settlement flows have generally defaulted to networks where collateral infrastructure, liquidity depth, and counterparty connectivity were already in place.
Within that context, xrp ledger tokenization now sits at a crossroads. XRPL holds a large share of outstanding tokenized Treasury supply and displays rising stablecoin activity, yet most secondary trading and transfer flow is still concentrated on Ethereum and layer-2 platforms, as multiple blockchain analytics providers have observed.
Key indicators to watch over the next quarter
Market observers say the next 30 to 90 days could offer clearer signals about XRPL’s trajectory in the tokenized Treasury segment. Moreover, several indicators will be closely watched: whether transfer volumes on XRPL rise to more closely match the concentration of token balances, and whether new regulated issuers decide to launch products directly on the network.
Another critical indicator is whether Aviva moves from partnership announcement to a live tokenized fund structure with measurable holder counts and published documentation. That said, current data still points to a split model in which XRPL anchors significant token supply while Ethereum and its scaling solutions retain dominance in day-to-day trading and liquidity provision.
In summary, XRPL has secured a central role in the issuance of tokenized Treasuries and related assets, but its longer-term position in real-world asset markets will depend on whether on-chain activity, liquidity, and institutional product launches catch up with the growing supply base in the coming months.
Source: https://en.cryptonomist.ch/2026/02/16/xrp-ledger-tokenization/
