Flare Founder Reveals Why XRP Ledger Could Dominate RWA Issuance

Flare Founder Hugo Philion has opined that the XRP Ledger (XRPL) could dominate RWA issuance, alluding to the network’s global distribution channel. He also touched on the Flare network’s role in the XRP ecosystem, noting that it continues to provide DeFi access for XRP holders.

Flare Founder Comments On Why XRP Ledger Could Dominate Tokenization

During an interview at the XRP Las Vegas Conference, Philion opined that the network will be successful with RWA issuance because of its distribution channel. He declared that the network has better distribution in the U.S., South Korea, and Japan than any other network.

As such, the Flare founder believes this is likely to motivate asset issuers seeking distribution to tokenize their products on the XRP Ledger rather than on other networks. He made these remarks while highlighting the network’s growth in total RWA value.

The XRPL currently ranks above other top layer-1 networks, such as Solana, in terms of total RWA value. RWA.xyz data shows that the total RWA value on XRPL is currently at around $3.6 billion, up over 70% in the last 30 days. Meanwhile, Solana’s total RWA value currently stands at $2.5 billion.

It is also worth noting that the U.S. tokenized treasuries on the XRP Ledger have increased 8x over the last year, now totaling over $418 million. The trading volume of these tokenized assets has also increased significantly this year, further highlighting the massive adoption that the network is currently witnessing.

Meanwhile, the Flare founder also commented on his network’s role as the XRPL potentially dominates RWA tokenized assets. He stated that Flare will help provide further functionality to these asset issuers, possibly as it relates to XRP DeFi.

On Scaling XRP DeFi

Philion stated that Flare is the largest DeFi ecosystem for XRP and that they are scaling “slowly” because markets take time to stabilize. He noted that they have to bring on stablecoins and onboard institutional investors willing to lend their stablecoins as part of the DeFi process.

The Flare founder added that security is also a priority as they have to ensure the whole process is safe and “scale responsibly.” He alluded to the shortfalls the DeFi ecosystem on Ethereum is currently facing due to the Kelp DAO exploit, and why it was important to scale responsibly.

As part of the move to scale XRP DeFi, Philion also revealed that it has expanded into other ecosystems to source stablecoin liquidity, enabling users to borrow FXRP, the wrapped XRP on the Flare network. He also mentioned that they plan to launch additional vaults in the near future to boost the XRP DeFi ecosystem.