Ripple Unveils its Plans for XRP Ledger in the DeFi Sector

Ripple shared an in-depth update today about its ambitions for the XRP Ledger (XRPL) in the DeFi sector, with a sharp focus on institutional decentralized financing. This is not a side project –...

February 26th, 2025
Max Latupeirissa

Ripple today shared an in-depth update on its ambitions for the XRP Ledger (XRPL) in the DeFi sector, with a sharp focus on institutional decentralized finance. This is not a side project – it’s a core pillar of Ripple’s strategy to build infrastructure for banks and financial institutions.

The XRPL is being positioned as a secure, scalable layer-1 solution, with fast transaction times (3-5 seconds), low costs, and a compliance-friendly architecture. Think of native DEX functionality and tools such as Automated Market Makers (AMM’s), which make it attractive for financial players who want to experiment with DeFi without the risks of less regulated platforms.

Future Vision: XRPL as DeFi Powerhouse

Ripple’s roadmap for XRP Coin revolves around strengthening the XRPL, and exciting things are on the horizon. A key development is the introduction of Decentralized Identity (DID) standards, which allow identity data to be securely managed on-chain – a game changer for regulated finance. In addition, there will be a Multi-Purpose Token (MPT) standard, aimed at business needs. This allows financial institutions to tokenize loans, manage collateral, and issue stablecoin-backed credit lines. The goal? Making XRPL the hub for regulated on-chain financing, with innovations that elevate institutional DeFi to a new level.

Legal Breakthrough and Market Impact

With a focus on DeFi and institutional adoption, Ripple is building a solid foundation for the XRPL. The MPT standard and DID support could finally persuade banks, while the low costs and speed enhance XRP’s utility.

XRP’s price – now around $2.22 – has also been under pressure due to the SEC case, which slowed Ripple’s growth plans. But hope is growing now that the SEC under Trump appears to be taking a more crypto-friendly course. Think of withdrawn cases against Coinbase and OpenSea – if Ripple’s case is also settled or discontinued, it could be a significant catalyst. Combine that with whale accumulation and ETF speculations, and XRP is poised to benefit from a new regulatory landscape.