XRP Ledger faces test as tokenized Treasuries sit idle on XRPL

XRP Ledger now holds most tokenized U.S. Treasury supply, but trading and settlement still favor Ethereum and layer-2 networks, leaving XRPL’s role in flux.

Summary

• XRPL hosts roughly 63% of tokenized U.S. Treasury token supply, led by OpenEden’s TBILL vault token.​
• Aviva Investors’ partnership with Ripple could bring large-scale fund tokenization to XRPL over the next decade.​
• Despite this, most transfer volume and liquidity for tokenized Treasuries remain on Ethereum and layer-2s, where collateral rails are already built.

XRP Ledger holds approximately 63% of tokenized U.S. Treasury bill token supply, yet trading activity remains predominantly on Ethereum and layer-2 networks, according to blockchain data tracked by RWA.xyz.

The distribution gap highlights a emerging divide in the tokenized asset market between where digital securities are issued and where they are actively traded, industry observers noted.

Two recent developments have positioned XRPL as a potential venue for real-world asset tokenization. Aviva Investors announced a partnership with Ripple to tokenize traditional fund structures on the ledger, describing the initiative as a multi-year project. The asset manager characterized tokenization as transitioning from experimental phases to large-scale production over the next decade.

Additionally, OpenEden’s TBILL token, a vault token backed by short-dated U.S. Treasuries with 1:1 backing, maintains a majority of its circulating supply on XRPL, according to data from RWA.xyz.

However, transfer volume data reveals limited on-chain activity for TBILL on XRPL compared to Ethereum and certain layer-2 networks, according to the same dataset. The pattern suggests tokens are being issued and held on XRPL but moved and utilized on other blockchain networks.

Tokenized U.S. Treasuries refer to tokenized fund shares or vault tokens backed by short-dated U.S. government securities, held and transferred on blockchain networks. The sector has grown as institutional investors explore blockchain-based settlement infrastructure.

The Aviva-Ripple partnership focuses on tokenizing traditional fund structures rather than exclusively Treasury bills, according to the announcement. The companies have not yet launched a live tokenized fund product with a prospectus and eligible investor base.

XRPL has emphasized built-in compliance tools and near-instant settlement capabilities in its positioning to institutional clients, according to public statements from Ripple and partner firms. The approach targets regulated distribution channels rather than decentralized finance composability.

Stablecoin transfer activity on XRPL has grown in parallel with tokenized Treasury initiatives, according to on-chain metrics. The combination of stablecoins for settlement and Treasury tokens for yield represents a potential operational model for institutional users.

Ethereum and layer-2 networks currently maintain more developed on-chain liquidity infrastructure for tokenized assets, according to market participants. Tokenized Treasuries on those networks can be swapped against stablecoins and routed through institutional market makers at larger scale.

The tokenized Treasury market is evolving toward use cases in collateral and settlement workflows within the broader financial system, according to industry analysts. Institutions building lending and settlement flows have generally defaulted to networks with existing collateral infrastructure and liquidity depth.

The next 30 to 90 days could provide clearer signals on XRPL’s trajectory in the tokenized Treasury market, according to market observers. Key indicators include whether transfer volumes for Treasury tokens on XRPL rise materially to match balance concentrations, whether additional regulated issuers launch products on the network, and whether Aviva progresses from partnership intention to a live tokenized fund with measurable holder counts.

Current data shows XRPL holds significant token supply and growing stablecoin activity, while trading and transfer volumes remain concentrated on Ethereum and layer-2 networks, according to blockchain analytics platforms.