Ripple is initiating a transition in which XRP is no longer positioned primarily as a traded asset, but as infrastructure supporting tokenized financing and institutional settlement. At the World Economic Forum 2026, Ripple CEO Brad Garlinghouse said described how this shift is already taking shape through live tokenization activities, regulated integration with banks and on-chain settlement at scale.
XRP tokenization shifts from theory to balance sheet reality
Garlinghouse used tokenization as the primary context to explain this transition. He described tokenization as a process that has already gone beyond experimentation and become operational in financial institutions. To support that claim, he pointed to activity on the XRP Ledger, where The tokenized asset volume has increased significantly over the course of one year, rising from roughly $19 trillion to $33 trillion.
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That level of growth indicates institutional commitment rather than exploratory testing. Tokenized assets at this scale imply the involvement of banks, custodians and regulated entities that move real value. According to Garlinghouse, institutions are now focused on integrating tokenized assets into existing balance sheets, liquidity structures and settlement processes.
This shift changes what infrastructure is needed. Tokenization on an institutional scale requires networks that can handle large volumes consistently, provide deterministic settlement, and operate continuously. The XRP Ledger is positioned as one within this framework system that can support this throughput. The emphasis is not on innovation per se, but on reliability and execution under real financial constraints.
If tokenized assets are embedded in core financial activitiesthe support rails are no longer optional. They become fundamental. That is the context in which XRP is discussed, not as a standalone asset, but as part of the machinery that makes tokenized finance possible.
Connecting regulated assets and liquidity in the chain
Garlinghouse also addressed the structural challenge that arises when tokenization intersects with decentralized finance. Institutions want access to programmability and liquidity, but they shouldn’t compromise compliance, custody, or trust. He described this tension as the central problem that Ripple is trying to solve.
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Rather than positioning itself against traditional finance, Ripple is working directly with global banks to build regulated pathways between tokenized assets and on-chain liquidity. The aim is to enable institutions to interact with decentralized systems without going outside regulatory frameworks. Within this design, XRP acts as a settlement and connectivity layer, enabling movement between systems.
This approach reframes The utility of XRP. Its value lies in facilitating finality, access to liquidity and interoperability in regulated and on-chain environments. As tokenized assets, decentralized rails and institutional settlement converge, networks capable of delivering finality at scale are becoming increasingly important. Garlinghouse emphasized that the XRP Ledger already offers this capability, giving it a structural advantage. As a result, XRP is no longer positioned primarily as a tradable asset; it is being aligned as infrastructure that enables the issuance, movement and settlement of value within an increasingly symbolic financial system.
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