XRP Ledger welcomes a major upgrade: potentially supporting tokenized gold transfers

Web3 Technology Company and Education Platform EasyA Co-founder Phil Kwok recently shared a striking message with the community: “Tokenized gold is entering the XRP Ledger, and this will be extraordinary.”

Almost simultaneously, XRPL validator Vet emphasized the technical advantages of the XRP Ledger’s 24/7 availability, fast transfers, and integration with automated market makers. This provides an infrastructural foundation for introducing real-world assets like gold to the XRPL.

01 The Vision of Gold on XRPL

Phil Kwok’s declaration is not just empty talk. As early as June 2024, precious metal tokenization platform Meld Gold established a partnership with Ripple and launched gold and silver tokens in the third quarter of that year.

The core design of this project is that each issued token is directly backed by 1 gram of physical gold or silver, held and stored by trusted suppliers.

This introduces a new category of assets to the XRP Ledger, combining blockchain programmability with the inherent value of gold.

“Owning tokens backed by real metals on the ledger will change the use cases for XRP and XRPL,” industry advocates believe.

This development suggests that XRPL’s positioning could expand from an efficient cross-border payment network to a comprehensive financial infrastructure encompassing value storage and institutional-grade asset custody.

02 Technical Adaptation and Market Gaps

The technical features of the XRP Ledger make it naturally suitable for tokenized assets. Validators like Vet point out that its 7x24 hours nonstop operation, fast transaction settlement capabilities, and native DeFi tool integration potential form an ideal technical foundation.

Market demand for such products is real. Reports show that the tokenized precious metals managed by Paxos and Tether on other blockchains are worth billions of dollars, demonstrating investor interest in these assets.

However, there remains a gap between technological possibility and widespread adoption. Pano Mekras of Anodos Finance notes that incentives may be a missing link.

Large financial institutions may be reluctant to launch products on XRPL unless there are clear economic incentives. Projects with high trading volumes might require active promotion and stronger on-chain incentives.

03 Ecosystem Foundation and On-Chain Activity

The potential upgrade of gold tokenization is rooted in the growing XRPL ecosystem. By early 2026, the XRP ecosystem demonstrated strong vitality.

Data shows that the number of active developers has exceeded 2 million, and XRPL’s daily transaction count consistently surpasses 830,000.

In terms of token issuance, XRPL has become an important hub for innovation. By 2026, the total number of tokens issued on XRPL reached 3,498, covering a broad spectrum from Meme Coins and stablecoins to institutional financial assets.

Decentralized exchanges (DEXs) also performed impressively, with trading volumes remaining above $12 million. About 2,300 daily active traders participate in over 400 XRP trading pairs on XRPL DEX.

04 Market Response and Price Dynamics

Although discussions about tokenized gold are heating up, their specific impact on XRP’s price remains unclear. In January 2026, XRP’s price briefly broke through $2, reaching a high of around $2.41 during the mid-January rally.

Subsequently, the price retraced, falling approximately 14% from its high, with signs of institutional fund inflows and profit-taking in the market.

However, analyses generally agree that there is no clear evidence that discussions of tokenized metals directly drove these price movements. The market trend is more influenced by overall crypto market sentiment, ETF capital flows, and macroeconomic factors.

According to the latest data from exchanges like Gate, as of January 21, 2026, XRP’s price hovered around $1.92 within a narrow range.

05 Future Outlook and Challenges

If more tokenized metal products emerge on XRPL, the network could find new use cases beyond payments. Trading and settlement of gold and silver tokens will increase network transaction volume and may spawn new DeFi tools built around these tokens.

However, widespread adoption will ultimately depend on several key factors: compliant custody arrangements, reliable auditing practices, and clear regulatory frameworks. Industry observers believe there is still much work to be done in these areas.

Additionally, the economic incentives warned by Pano Mekras will play a decisive role in whether major issuers choose to join the XRPL ecosystem. Attracting traditional financial giants requires a comprehensive incentive model and risk-sharing mechanisms.

For XRP investors, the upgrade involving gold tokenization represents a long-term enhancement of the ecosystem’s fundamentals rather than a short-term price catalyst.

Market analysis indicates that XRP’s price still needs to overcome technical resistance, such as breaking through key 100-day and 200-day moving averages, to reverse the current downtrend. Investors should focus more on the actual growth and adoption of its ecosystem applications rather than solely on price fluctuations.

Future Outlook

As of January 21, 2026, XRP’s price on major global exchanges was approximately $1.92, having pulled back over the past week.

Its all-time high was $3.84 recorded in January 2018, and the recent high of $3.65 was reached in July 2025. The market’s attention has shifted beyond the XRP Ledger, where 1-gram physical gold bars await being written into the next blockchain block.