Ripple is planning a transition where XRP will no longer be positioned primarily as a traded asset, but as infrastructure supporting tokenized finance and institutional settlements. At the World Economic Forum 2026, Ripple CEO Brad Garlinghouse described how this change is already taking shape through live tokenization activity, regulated bank integration, and large-scale on-chain settlements.

XRP tokenization is moving from theory to balance sheet reality

Garlinghouse used tokenization as the main context to explain this transition. He described tokenization as a process that has gone beyond experiments and has found operational exploit in financial institutions. To support this claim, he pointed to activity on the XRP ledger, where the volume of tokenized assets has increased significantly in one year, rising from approximately $19 trillion to $33 trillion.

This level of growth signals institutional commitment, not exploratory testing. Tokenized assets at this scale involve the involvement of banks, custodians and regulated entities transferring real value. According to Garlinghouse, institutions are now focusing on integrating tokenized assets into existing balance sheets, liquidity structures and settlement processes.

This change changes the required infrastructure. Tokenization on an institutional scale requires networks that can consistently process immense volumes, provide deterministic billing, and operate continuously. The XRP Ledger is positioned within this framework as system capable of handling this throughput. The emphasis is not on innovation per se, but on reliability and execution within real financial constraints.

How tokenized assets become embedded in basic financial operationssupport rails are no longer optional. They become fundamental. In this context, XRP is discussed, not as a stand-alone asset, but as part of the mechanism that enables tokenized finance to function.

Connecting regulated assets and liquidity on-chain

Garlinghouse also addressed the structural challenge that arises when tokenization intersects with decentralized finance. Institutions want access to programmability and liquidity, but cannot compromise compliance, custody or trust. He described this tension as the main problem that Ripple is working to solve.

Instead of opposing time-honored finance, Ripple works directly with global banks regulated paths between tokenized assets and on-chain liquidity. The aim is to enable institutions to interact with decentralized systems without going beyond the regulatory framework. In this project, XRP acts as a settlement and connectivity layer, enabling movement between systems.

This approach changes the framework XRP tool. Its value lies in facilitating finality, access to liquidity and interoperability across regulated and on-chain environments. As tokenized assets, decentralized railways, and institutional settlements converge, networks capable of ensuring finality at scale are becoming more and more essential. Garlinghouse emphasized that XRP Ledger already provides this capability, which gives it a structural advantage. As a result, XRP is no longer positioned primarily as a tradable asset; it is being adapted as an infrastructure enabling the issuance, flow and settlement of value in an increasingly tokenized financial system.

Featured image created with Dall.E, chart from Tradingview.com