Ripple Price Prediction: How tokenized treasuries could accelerate XRP to $10 by end-2025
Ondo Finance launched tokenized treasuries on the XRP Ledger in June, paving the way for seamless institutional adoption.
The market capitalization of tokenized treasuries has grown to $5.9 billion despite market uncertainty over US tariffs.
Institutional interest and adoption, including tokenized treasuries and potential spot ETF approval, could boost XRP price to $10.00.
The adoption of cryptocurrency-related financial products, including tokenized treasuries, is on overdrive globally, with the focus now shifting to robust networks such as Ripple's XRP Ledger (XRPL). Investors are persistently demanding speed, efficiency and seamless connectivity, particularly with the rise of distributed ledger technology (DLT).
Tokenization creates a digital representation of an asset on a blockchain. According to InvestaX, "tokenization doesn't change what Treasuries are. It improves how they're accessed, held, and transacted."
What are tokenized treasuries?
Tokenized treasuries refer to traditional debt instruments, such as short-term Treasury Bills, medium-term notes and long-term bonds. The tokenization of treasuries accords them a digital representation on the blockchain.
United States (US) Treasuries are recognized and valued as some of the world's safest and most liquid assets. Investors see tokenized Treasuries as key pillars of stability in capital markets. They offer reliable income and a benchmark for risk-free returns.
Most stakeholders are in the early stages of adoption, with a few notable public and private entities stand providing access to different forms of treasuries on the blockchain.
The report "Digital Assets and the Treasury Market," published by the Department of the Treasury, mentions that BlackRock's BUIDL Fund and Franklin Templeton's OnChain US Government Money Fund are among the most notable Treasury funds.
Other entities offering access to Treasury funds in the US include Ondo Finance, Hashnote and CoinShares. There are other niche offerings, such as tokenized Treasury repo projects, which support around-the-clock settlement and trading. JP Morgan's Onyx platform is an example of this asset class, utilizing blockchain technology to offer tokenized treasuries backed by repo solutions.
Tokenized US Treasuries by product | Source: WEF
Issuers of tokenized treasuries use smart contracts to enable clearing and settlement. Tokenization supports unrivalled transparency and accountability. Key drivers of this asset class include innovation, inclusion and increased liquidity.
The World Economic Forum (WEF) estimates the tokenized treasuries market to be valued at $5 billion, following meteoric growth from approximately $104 million in 2023.
Ondo Finance US tokenized treasuries on Ripple's XRL Ledger
Ondo Finance made headlines in early June when it launched the "Ondo Short-Term US Government Treasuries (OUSG)" on the XRP Ledger. The offering stood out for its seamless redemption functionality via Ripple's stablecoin, RLUSD.
"This launch brings OUSG to the XRPL's broad institutional user base, introducing a composable and compliance-first asset to a blockchain built for financial institutions," Ondo Finance said in a statement.
Ondo Finance explained that the rollout provides a platform for institutional Decentralized Finance (DeFi) and advanced fund management solutions while merging traditional finance and the fast-growing DeFi industry.
How Ripple is building institutional-grade finance
Ripple's contribution to institutional-grade finance has remained notable, with the launch and development of flagship products such as On-Demand Liquidity (ODL) and Ripple Payments, which was formerly referred to as RippleNet.
Ripple Payments boasts over 300 financial institutions, comprising banks, payment providers and other operators in the cross-border remittance sector. Some notable partners include Bank of America, Western Union, American Express, Santander and Amazon Web Services (AWS).
The XRP Ledger's suitability for tokenized treasuries is inherent in its unique technical and operational features, which are easily customizable to meet the needs of institutional-grade finance.
XRPL is known for supporting fast and low-cost transactions, which average between three and five seconds. The low transaction fees and fast transaction throughput enable real-time minting, redemption and token transfers.
The XRP Ledger's ability to scale its transaction capacity without compromising speed and cost has enticed several institutions, including Ondo Finance and NASDAQ, to launch highly scalable financial products.
Ripple's Institutional DeFi roadmap emphasizes the XRP Ledger's robust infrastructure, which currently supports the issuance of stablecoins such as the RLUSD. The stablecoin serves as a bridge asset for tokenized assets, including stocks and treasuries, by providing liquidity and interoperability with other blockchains, such as Ethereum.
The XRP Ledger is a compliance-ready platform that supports Decentralized Identifiers (DIDs) and XLS-70 Credentials, which back self-sovereign identity and permissioned access. By utilizing these features, tokenized treasury operators can ensure compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
"Multi-Purpose Token (MPT) introduces a more flexible, efficient, and metadata-rich token standard that allows institutions to tokenize and trade bonds, RWAs, and structured financial products with enhanced functionality," Ripple said in its 2025 institutional-DeFi focused update.
Guggenheim's Digital Commercial Paper (DCP) has already leveraged these features.
The XRP Ledger uniquely enables and supports the creation of complex tokenized assets through programmable features, such as fractionalized treasuries and yield-bearing instruments.
Demand for tokenized treasuries and stocks is expected to grow, especially with the market anticipated to reach $600 billion by 2030, according to a Boston Consulting Group (BCG) whitepaper in collaboration with Aptos Lab and Invesco.
The XRP Ledger's 2025 roadmap focused on institutional Decentralized Finance (DeFi) and compliance upgrades, highlighting Ripple's commitment to building compatible and robust networks to support the tokenization of real-world assets.
As institutional adoption and demand for tokenized assets grow, Ripple could capture the tokenized treasuries market, expanding the utility of the XRP token and the RLUSDT stablecoin.
The XRP Ledger, RLUSDT, and XRP adoption could receive a significant boost with the conclusion of the Securities and Exchange Commission (SEC) lawsuit. Ripple and the SEC have filed a joint motion requesting an indicative ruling to settle the case and stop the ongoing appeals.
