<h3 id="strong-key-takeaways-strong">Key Takeaways:</h3><ul><li>XRP Ledger (XRPL) was developed by Ripple Labs as the native blockchain for XRP and RLUSD.</li><li>Optimized for cross-border payments and RWA tokenization, making it a preferred choice for financial institutions.</li><li>High efficiency with transaction settlement in 3 to 5 seconds at negligible costs (~0.00001 XRP).</li><li>Wide-ranging applications across banking, payments, and tokenization.</li></ul><h3 id="strong-understanding-xrp-ledger-strong">Understanding XRP Ledger</h3>Launched in 2013 by Ripple Labs, XRP Ledger was designed as a faster and more efficient alternative to Bitcoin’s slow settlement times. Over the years, XRPL has evolved into a key player in cross-border transactions, land record digitization, and Real World Asset (RWA) tokenization.Leading financial institutions, including JP Morgan, Standard Chartered, American Express, and MoneyGram International, use XRPL to enhance transaction speed and efficiency. With settlement times of 3 to 5 seconds, it has gained significant traction in global finance.However, XRPL has faced criticism due to its lack of smart contract capabilities and degree of centralization—only 150 validators, with 35 classified as &#34;trusted&#34;. To address this, Ripple Labs has proposed a sidechain for smart contract integration.<h3 id="strong-xrpl-tokens-xrp-rlusd-strong">XRPL Tokens: XRP &amp; RLUSD</h3><h4>XRP</h4><ul><li>Native cryptocurrency of XRPL, ranked third-largest by market cap after Bitcoin and Ethereum.</li><li>Fixed supply of 100 billion tokens, with 58% currently in circulation.</li><li>Survived intense legal battles but was finally cleared of regulatory hurdles in 2025.</li></ul><h4>RLUSD</h4><ul><li>Stablecoin built on XRPL to facilitate zero-slippage settlements.</li><li>Introduced to replace XRP’s role in settlements, reducing volatility risks.</li><li>Expected to power RWA markets, functioning similarly to USDT in crypto trading.</li></ul><h3 id="strong-key-applications-of-xrp-ledger-strong">Key Applications of XRP Ledger</h3><ol><li>Cross-Border Payments – Trusted by banks like Standard Chartered &amp; American Express for fast, cost-effective transactions.</li><li>RWA Tokenization – Partnered with Abrdn Liquid Fund to tokenize assets, expanding blockchain’s role in financial markets.</li><li>Institutional Fund Transfers – Used by banks and enterprises for secure and efficient internal settlements.</li></ol><h3 id="strong-the-future-of-xrpl-strong">The Future of XRPL</h3><h4>Integration with the US Financial System</h4><ul><li>The SEC’s proposal to integrate XRPL into the US financial system has fueled speculation that major banks, including JP Morgan, Goldman Sachs, and Bank of America, could adopt XRP as a liquidity solution.</li></ul><h4>Growth in RWA Tokenization</h4><ul><li>RWA tokenization is one of the fastest-growing sectors in crypto. With RLUSD as a settlement medium, XRPL is positioned to become a key player in the space.</li></ul><h4>Potential SWIFT Replacement</h4><ul><li>As SWIFT’s current system phases out by November 2025, financial institutions are exploring blockchain-based alternatives.</li><li>The XRP Ledger could emerge as the leading payment network, potentially saving the US financial sector $7.5 billion annually.</li></ul>Disclaimer: Voice of Crypto strives to provide accurate and timely information but is not responsible for missing or inaccurate data. Cryptocurrencies are volatile assets—always conduct your own research before making financial decisions.

XRP Ledger: Why the US SEC Sees It as a Key Player in Government Transactions

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