Ripple’s Quiet DeFi Drama Unfolds on the XRP Ledger

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Ripple has drawn the curtain a touch wider and invites us to peer into the next act of its patient little play about the XRP Ledger and institutional DeFi. Tokenization, privacy, and native lending-yes, the familiar tripod-reappear, dressed in fresh promises of more stablecoins that will, it is whispered, lend XRP a kinder glow. The room smells of coffee, paper, and the soft clatter of a market that never truly sleeps. 😂

Ripple Reveals Latest Roadmap For Institutional DeFi On The Ledger

In a blog post, Ripple treats tokenization as the backbone of the ledger’s institutional dream. They plan to unveil the Multi-Purpose Token (MPT) standard by October-a token that can carry essential metadata without the pomp and circumstance of bulky smart contracts. The note arrives with the cadence of a well-pressed letter: practical, a touch pompous, and perhaps a tad overly confident. 🤔

Regarding institutional DeFi on the XRPL, Ripple says the MPT will faithfully represent assets of bond issuers, money market funds, and structured products, enabling native trading on the network. The next phase, they claim, will weave MPTs into the DEX for easy trading, AMM liquidity pools, and cross-token payments-like sewing several pockets into the ledger’s old coat. 🧵

Moreover, Ripple plans to introduce a native lending protocol on the Ledger, described as the “most significant near-term milestone.” The protocol is slated to go live in XRPL Version 3.0.0 later this year. It promises pooled lending and underwritten credit directly at the ledger level, which sounds efficient and also vaguely like inviting the auditors to tea. ☕

Ripple argues that the appeal of a native lending protocol for institutions is clear: low-cost capital sourced within KYC/AML standards. The ledger, in their telling, becomes a respectable banker with a government badge. 😌

The protocol will pool liquidity from a global base of smaller investors into institutional-sized loans while maintaining compliance. For loan managers, this means a chance to meet rising liquidity demand from TradFi by tapping into the growing crypto liquidity, especially on the XRP Ledger. 🗺️

The Push For Programmable Privacy

Ripple reveals that one of the XRP Ledger’s next major upgrades is programmable privacy. The firm notes that for financial institutions, full transparency doesn’t always wear the right hat, but privacy features must still pass the audits with a stiff upper lip. The first privacy-focused application, confidential MPTs, is said to already be in development and is scheduled to launch in the first quarter of next year. 😏

These confidential MPTs will support privacy-preserving collateral management, a critical requirement for institutional adoption of tokenized finance. The broader aim, Ripple suggests, is to introduce more stablecoins, RWAs, lending, compliance tooling, and privacy directly at the protocol level on a global scale. Over the last year, the Ledger has cracked into the top 10 chains for RWAs and has reached its first $1 billion month in stablecoin volume. 🧭

At the time of writing, the XRP price is trading around $2.84, wandering a bit in the last 24 hours according to CoinMarketCap. 💸

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2025-09-25 02:14