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Top 5 Use Cases of XRP in 2025: Beyond Payments

Introduction: XRP’s role beyond payments

When most people think of XRP, they picture fast, low‑fee remittances. In 2025, however, the XRP Ledger (XRPL) has expanded far beyond simple payment rails. According to a Webopedia overview of banks using XRP, the ledger processes over 2.14 million daily transactions and the XRP market cap has exceeded $180 billion[1]. XRPL’s scalability, instant settlement and low fees have attracted banks such as SBI Holdings, Santander and PNC Bank, but they also underpin emerging use‑cases like tokenization, decentralized finance (DeFi), identity systems and more[2].

This guide highlights five important use cases for XRP in 2025 that go beyond cross‑border payments. Each section explains what the use case is, why it matters, and provides sources to back up the claims. It concludes with a brief note on how readers can access XRP using non‑custodial tools like Rubic.

Internal links: Looking for the best ways to get XRP into your wallet? Our Comparative Guide: How & Where to Buy XRP Around the World explains which platforms operate in your country and how to minimize fees, while the XRP Live Price & Market Data page shows real‑time charts and market depth. If you’d like to compare XRP’s performance with other digital assets, explore our Swap XRP for Other Crypto Assets section.

1. Real‑World Asset Tokenization

What it is: Tokenization converts ownership of physical or financial assets into digital tokens on a blockchain. On XRPL, tokenized assets can represent real estate, stocks, bonds, carbon credits or other rights, enabling fractional ownership and near‑instant transfer.

Why it matters: Tokenization on XRPL allows institutions and investors to move illiquid assets onto a transparent, efficient ledger. CryptoSlate notes that XRPL’s design supports real‑world asset tokenization, with built‑in regulatory features that appeal to enterprises[3]. Tokenized assets can be settled with XRP or other tokens, unlocking capital efficiency and new markets.

Key developments:

  • Built‑in asset issuance: XRPL supports native tokens via the AccountSet and TrustLine mechanisms, enabling issuers to create compliant tokens without smart‑contract risks.
  • Enterprise interest: Leading banks and fintechs exploring tokenization include SBI Holdings and Santander, which already use XRP for cross‑border liquidity[4]. Tokenization is a natural next step for digitizing securities and trade finance.
  • Regulated token standards: The XLS‑20 standard (non‑fungible tokens) and forthcoming amendments (e.g., SingleAssetVault) allow new asset classes to be issued natively on XRPL, paving the way for tokenizing real estate, art and commodities.

Why this use case stands out

Tokenization unlocks liquidity and transparency for assets that traditionally take days or weeks to settle. XRPL’s fast finality, low fees and regulatory alignment make it attractive to institutions seeking on‑chain assets[3]. As more banks and governments pilot tokenized bonds and equities, XRPL could become a backbone for digital capital markets.

2. Decentralized Finance (DeFi) and AMMs

What it is: DeFi refers to financial services built on public blockchains. On XRPL, DeFi includes automated market makers (AMMs), lending/borrowing platforms and decentralized exchanges (DEXs). Unlike Ethereum‑style smart contracts, XRPL’s DEX uses a native order book and upcoming AMM amendment (XLS‑30) to provide liquidity directly within the ledger.

Why it matters: While Ethereum and Solana dominate DeFi today, XRPL is carving out a niche. 101 Blockchains notes that Ripple’s infrastructure and XRP Ledger serve as building blocks for DeFi applications, providing tools and protocols (e.g., RTXP and Interledger) for algorithmic trading, lending and liquidity[5]. CryptoSlate reports that XRPL is nurturing a budding DeFi sector with total value locked approaching $60 million[6]. Though small compared to Ethereum, XRPL’s momentum is accelerating.

Key developments:

  • Native DEX: XRPL hosts one of the oldest decentralized exchanges. It maintains an order‑book mechanism that interacts with upcoming AMMs, enabling efficient swaps without smart‑contract vulnerabilities[7].
  • AMM amendment (XLS‑30): The AMM amendment adds automated liquidity pools integrated with the DEX and allows users to create or contribute to AMMs. The proposal includes new transaction types such as AMMCreate, AMMDeposit and AMMVote[8], enabling users to earn fees and participate in governance.
  • Permissionless smart‑contract sidechains: Developers are testing an EVM‑compatible sidechain for XRPL that will allow Ethereum‑compatible DeFi apps to deploy without leaving the XRP ecosystem[9]. Combined with enhanced cross‑chain capabilities and batch transactions, this positions XRPL as a cross‑chain DeFi hub[10].

Why this use case stands out

DeFi on XRPL offers ultra‑fast settlement times and eliminates front‑running opportunities common on Ethereum. With built‑in order books, AMM pools and the forthcoming EVM sidechain, XRPL could attract traders seeking low‑fee swaps and new liquidity venues. As TVL grows and more protocols launch, XRP could become a major DeFi asset.

3. Stablecoins and On‑Chain Liquidity

What it is: Stablecoins are digital tokens pegged to fiat currencies (e.g., USD, EUR). They provide price stability and act as on‑chain liquidity for trading, lending and payments. XRPL hosts several regulated stablecoins, including Ripple’s RLUSD, Circle’s USDC, Stably’s USDB, EURØP and XSGD.

Why it matters: Stablecoins increase liquidity on XRPL and enable enterprise‑grade payment flows. CryptoSlate reports that the integration of RLUSD and USDC has expanded XRPL’s ecosystem and reinforced its role in cross‑border payments[11]. As institutions seek on‑chain treasury management, stablecoins provide the certainty and compliance needed for large transfers.

Key developments:

  • RLUSD expansion: Ripple’s RLUSD stablecoin, backed by USD reserves, launched in 2024 and is expanding across Africa and Asia. It is issued on XRPL and is designed for institutional-grade settlement. (Recent news notes RLUSD partnerships with Chipper Cash, VALR and Yellow Card but details were inaccessible in this environment.)
  • On‑demand liquidity (ODL): Ripple’s ODL leverages XRP and stablecoins to settle cross‑border payments in seconds. Major banks such as SBI Holdings and Santander use ODL to eliminate pre‑funding and reduce costs[4].
  • Liquidity pools: Upcoming AMM and DEX upgrades will integrate stablecoin pairs, enabling users to provide liquidity and earn fees while traders benefit from tighter spreads.

Why this use case stands out

Stablecoins bridge traditional finance and crypto. On XRPL, they provide an on‑ramp for institutions and allow enterprises to settle transactions in familiar fiat‑denominated tokens. As RLUSD and other stablecoins gain adoption, XRP’s liquidity and price stability could improve, making it easier to trade and settle tokenized assets.

4. Digital Identity and Compliance Tools

What it is: Digital identity systems assign verifiable credentials to individuals or entities. XRPL’s Credentials amendment (XLS‑70) introduces on‑chain tools for managing authorization and regulatory compliance. Users can issue, accept and revoke credentials that attest to KYC/AML status, membership or other privileges.

Why it matters: In a regulatory landscape that increasingly demands compliance, having native identity capabilities allows XRPL to support regulated financial applications while preserving user control. According to the XRPL documentation, the Credentials amendment adds new transaction types—CredentialCreate, CredentialAccept and CredentialDelete—and introduces a Credential ledger entry[12]. It also adds a CredentialIDs field to standard transactions, allowing accounts to prove authorization when sending or receiving funds[13].

Key developments:

  • On‑chain KYC/AML: Credentials enable wallets or institutions to associate verifiable identity data with transactions, helping them comply with jurisdictional regulations without relying on centralized identity providers.
  • Decentralized identifiers (DIDs): While not yet fully deployed, proposals for DIDs on XRPL aim to provide self‑sovereign identity, enabling users to control and selectively disclose personal information.
  • Cross‑platform compliance: Because credentials are part of the ledger, they can be referenced by other smart‑contract platforms or payment networks, paving the way for interoperable compliance across blockchains.

Why this use case stands out

By incorporating identity and compliance features, XRPL can serve regulated industries such as banking, securities, healthcare and supply chain. Privacy‑preserving credentials also align with XRP’s ethos of minimizing data exposure while maximizing trust. As digital identity becomes essential for DeFi and tokenized markets, XRPL’s built‑in solution could give it a competitive edge.

5. Cross‑Chain Interoperability and Institutional Solutions

What it is: Cross‑chain interoperability allows assets and data to move seamlessly between different blockchains. XRPL’s roadmap includes an EVM‑compatible sidechain, Interledger Protocol (ILP) integration and enhanced cross‑chain capabilities that enable XRP and other tokens to be used across ecosystems.

Why it matters: Interoperability unlocks liquidity, expands DeFi possibilities and reduces dependence on any single chain. 101 Blockchains highlights that Ripple’s Interledger Protocol enables transactions between different payment networks and is a core component of XRP’s DeFi strategy[14]. CryptoSlate notes that upcoming upgrades will provide EVM compatibility, cross‑chain capabilities, batch transactions, token escrow and permissioned DEXs[15].

Key developments:

  • EVM sidechain: Ripple has launched an EVM testnet that will let developers deploy Ethereum‑compatible smart contracts using XRP as gas, bridging Ethereum’s DeFi ecosystem with XRPL’s liquidity[9].
  • Cross‑chain bridges: Enhanced cross‑chain functionality will allow XRP and tokenized assets to flow between XRPL and other networks, improving liquidity and arbitrage opportunities[10].
  • CBDC pilots and institutional adoption: Ripple has partnered with governments in at least five nations to develop CBDC pilots, providing tools for digital asset custody, stablecoins and cross‑border payments[16]. These initiatives demonstrate XRP’s role in national payment systems and open the door to central‑bank‑issued tokens interoperating with XRPL.

Why this use case stands out

As blockchain ecosystems proliferate, cross‑chain interoperability is crucial. XRPL’s focus on EVM compatibility and ILP integration positions it as a hub connecting siloed networks. Institutions and governments exploring CBDCs can leverage XRPL’s settlement layer and identity tools to create interoperable digital currencies, further expanding XRP’s utility.

Conclusion and How to Access XRP

In 2025, the XRP Ledger is more than a payments network—it is a multi‑faceted platform supporting asset tokenization, DeFi and AMMs, stablecoins, digital identity, and cross‑chain interoperability. This evolution is reflected in the ledger’s growing transaction volume and market capitalization[1] and in the diverse ecosystem of banks, fintechs, developers and governments building on XRPL[4].

For individuals looking to participate in these use cases, accessibility is key. Non‑custodial swap aggregators like Rubic enable users to convert crypto into XRP and other tokens directly from their wallets, without needing to deposit funds on an exchange. By routing trades across hundreds of DEXs and bridges, these aggregators find competitive rates and often waive protocol fees on small trades, making it easy to acquire XRP and explore its expanding ecosystem.

Security & Storage Considerations

As XRP’s utility expands, so do the risks associated with holding and transferring it. Recent years have seen billion‑dollar breaches at centralized exchanges; in February 2025, hackers drained $1.5 billion from a leading exchange’s hot wallet[17], and industry‑wide crypto hacks totalled $2.2 billion in 2024[18]. These incidents highlight three important lessons:

  • Don’t trust custodial platforms for long‑term storage. Hot wallets are frequent attack targets because they stay online and rely on server security[19]. Even regulated exchanges can be compromised[20]. If you purchase XRP on an exchange, withdraw it to a personal wallet as soon as possible.
  • Use hardware and software wallets together. A hardware wallet (e.g., Ledger, Trezor) stores your private keys offline, protecting them from malware. Pair it with a software wallet (e.g., Xaman/XUMM, Trust Wallet, Exodus) for convenient daily transactions. According to Webopedia, cold wallets offer stronger protection when combined with proper backups and audits[19].
  • Consider non‑custodial swaps for smaller or privacy‑focused transactions. Aggregators like Rubic let you swap tokens directly from your wallet without depositing funds on an exchange. Because your keys never leave your device, you avoid the custodial risks associated with centralized platforms.

Staying informed about security news and practising good key management will help you reap the benefits of XRP’s growing ecosystem without unnecessary risks.

Ready to explore or trade XRP? Use the following links to access different swap routes and bridge services:

External links: To dive deeper into the topics covered here, see the official XRPL documentation for technical details and the Webopedia guide to banks using XRP for institutional adoption. For insights on Ripple’s CBDC pilots and tokenization initiatives, 101 Blockchains has a detailed overview at https://101blockchains.com/is-ripple-the-next-big-thing-in-defi/. For more on the XRPL’s DeFi growth and stablecoin integrations, read CryptoSlate’s report.

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[1] [2] [4] 15 Banks Using XRP | Webopedia

https://www.webopedia.com/crypto/learn/banks-using-xrp

[3] [6] [7] [9] [10] [11] [15] XRP Ledger payment transactions surges 430% in two years

https://cryptoslate.com/xrp-ledger-payment-usage-surges-430-in-2-years-gains-ground-in-defi-and-tokenization

[5] [14] [16] Is Ripple the Next Big Thing in DeFi? – 101 Blockchains

https://101blockchains.com/ripple-in-defi

[8] [12] [13] Known Amendments

https://xrpl.org/resources/known-amendments

[17] [18] [19] [20] 5 Biggest Wallet Hacks in History | Webopedia

https://www.webopedia.com/crypto/learn/biggest-crypto-wallet-hacks

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