Infrastructure shifts do not begin with price action or narratives. They start with systems reaching operational readiness. Ripple’s latest Institutional DeFi roadmap captures that stage for the XRP Ledger.
Reece Merrick, Ripple’s Senior Executive Officer and Managing Director, summarized the direction clearly. Merrick believes XRP is becoming the backbone for real-world financial infrastructure.
He stated that the XRP Ledger is evolving into “a daily use layer for institutions,” with XRP “powering settlement, FX, collateral, and on-chain credit.” The roadmap he referenced outlines how that evolution is already underway.
XRP is emerging as the backbone for real-world financial infrastructure.
Take a look at the Institutional DeFi roadmap below. It lays out exactly how the XRP Ledger is evolving into a daily use layer for institutions, with XRP powering settlement, FX, collateral, and on-chain…
— Reece Merrick (@reece_merrick) February 6, 2026
XRP Embedded In Settlement and FX Activity
The XRP Ledger now supports regulated participation through Permissioned Domains and on-ledger credentials. These features allow institutions to operate in compliant environments while retaining real-time settlement. Within these structures, XRP serves as the native settlement asset.
XRP acts as the auto-bridge in FX transactions across stablecoins and tokenized assets. Each transaction consumes XRP through network fees, directly tying institutional activity to the asset’s utility. As stablecoin issuance and cross-border FX volumes expand on XRPL, XRP remains central to execution.
The roadmap confirms that these workflows are not experimental. They are designed for daily operational use, with compliance and efficiency built into the base layer.
Collateral Management Moves On-Chain
Collateral efficiency is a priority for financial institutions, and XRPL now supports it at the protocol level. Token Escrow enables conditional settlement for both IOUs and Multi-Purpose Tokens. This allows structured collateral releases without external smart contracts.
Batch Transactions add atomic delivery-versus-payment functionality. This removes settlement risk in multi-asset transactions and supports use cases common in repo and liquidity management markets. These actions require reserves and transaction fees, both denominated in XRP.
Multi-Purpose Tokens extend this framework further. They allow institutions to issue structured financial instruments with embedded rules, metadata, and restrictions. XRP underpins these activities through network usage and reserve requirements.
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Native Credit Markets Take Shape
The roadmap also details the upcoming introduction of on-ledger credit through the XLS-65 and XLS-66 Lending Protocol. This system enables fixed-term, fixed-rate lending directly on XRPL while keeping underwriting off-chain.
Single Asset Vaults pool capital under configurable permissions. Loans execute and settle on-ledger, with repayment automation built into the protocol. XRP can be borrowed, lent, and used as the default bridge asset within these credit flows. Evernorth’s stated intent to utilize the Lending Protocol highlights how institutions plan to deploy these tools in practice rather than theory.
Infrastructure Now in Place
Merrick concluded that “the foundation is set.” The roadmap supports that statement with live features, scheduled upgrades, and defined institutional use cases. XRP now operates as a settlement asset, liquidity bridge, collateral anchor, and credit instrument within a single ledger.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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