The XRP Ledger (XRPL) has quietly become a dominant repository for one of the hottest trends in crypto: tokenized U.S. Treasuries. But even though the ledger suggests it’s winning the issuance war by owning 63% of the supply of a major Treasury token, there’s a catch: It’s not traded there. Is this a sign of a sleeping giant, or is the network serving as a digital ghost town for institutional assets?
Blockchain analyzes from RWA.xyz and NS3.AI reveal that while XRPL dominates in raw holdings, primarily through OpenEden’s TBILL vault token, transfer activity and liquidity remain overwhelmingly focused on Ethereum and layer 2 networks. In fact, more of the supply resides on XRPL than on Ethereum, indicating that institutions are comfortable parking significant capital on Ripple’s blockchain.
“Most transfer volumes and liquidity for tokenized Treasuries remain on Ethereum and Layer 2, where collateral rails are already built,” according to GFM Review’s analysis.
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XRPL now hosts over $150 million in tokenized US Treasury debt
There is massive and visible growth in pure numbers. XRPL now hosts over $150 million in tokenized US Treasury debt, a staggering increase from just $5 million a year ago. Major players like Aviva Investors have recently partnered with Ripple, describing the shift as a move from simple experiments to “large-scale production.”
However, trading volume paints a different picture. While the tokens are on XRPL, financial “gravity,” the use of collateral and active trading, still occurs on Ethereum. Assets actually sit idle in a vault rather than circulating through the financial system.
What are tokenized Treasury bonds? Simply put, these are digital receipts for US government debt that reside on the blockchain. They allow investors to earn safe interest (yield) without leaving the crypto ecosystem.
To understand where XRPL stands today, imagine a manufacturing plant versus a busy shopping mall. The show is the factory where products (tokens) are created and stored. Distribution and commerce are the shopping centers where people actually buy, sell and use these products. Right now, XRPL is proving to be an efficient factory, but Ethereum remains the busy trading hub where actual trading takes place.
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Why Volume Gap Matters to Investors
If you hold XRP or invest in real-world assets (RWA), this distinction is essential. For a blockchain network to thrive, it needs more than just storage; he needs activity. Fees, liquidity, and network health depend on transactions, not just static holding.
The risk here is that XRPL becomes a “ghost chain” for these assets. A place where safe assets lie dormant, isolated from the broader opportunities of DeFi. Without active trading markets, liquidity can dry up. This makes it more difficult to enter or exit positions quickly.
There is, however, a bullish aspect to consider. A major hurdle overcome is that regulated entities trust XRPL for issuance. If developers can create better bridges and trading applications to unlock this dormant capital, volume could follow supply. The next few months will be a credibility test: can XRPL convert this store of value into an active market?
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The post XRP Ledger Holds 63% of Tokenized Cash Supply, But Trading Happens Elsewhere appeared first on 99Bitcoins.
