Ripple CTO Shares Rare 2013 XRP Ledger Tokenization Story  

• Ripple CTO David Schwartz showcased XRP Ledger’s tokenization capabilities in 2013 by redeeming physical silver through a unique gateway system.  
• XRP Ledger’s foundational tokenization concept continues to evolve, now driving real-world asset tokenization in partnerships like Ripple-Archax.  
• Ripple USD stablecoin’s global launch underscores XRP Ledger’s growing role in financial innovation, bridging digital and traditional asset ecosystems.  

Ripple CTO David Schwartz recently shared a compelling throwback to 2013, illustrating the XRP Ledger’s (XRPL) tokenization potential even in its infancy. This revelation came in response to a tweet from blockchain enthusiast Zach Rector, who spotlighted XRPL’s current use for tokenizing metals. Schwartz’s account demonstrated the ledger’s innovative capability to bridge digital tokens with physical assets. 

XRPL’s Early Tokenization Journey  

The XRP Ledger, which launched in June 2012 after a year of development, was already ahead of its time. Schwartz revealed how, in 2013, he used the XRPL to redeem silver dimes via a unique gateway. He described how an individual, holding a large collection of silver dimes, created a digital gateway. 

Users could send the physical dimes to the gateway operator and receive a corresponding DYM token balance on XRPL. Schwartz himself exchanged XRP for DYM tokens and redeemed them for a roll of silver dimes, marking one of XRPL’s earliest examples of tokenization.  

A Foundation for Future Innovations  

This anecdote highlights the XRPL’s early role in tokenization, a concept that has become a cornerstone of modern blockchain applications. While tokenization is now a key trend in crypto, XRPL’s design integrated this concept from its inception. Consequently, its current applications remain grounded in this foundational principle.  

Today, the XRP Ledger continues to lead in tokenizing real-world assets (RWAs). In June 2024, Ripple and Archax expanded their collaboration, aiming to bring hundreds of millions of dollars in RWAs to the ledger. This partnership further demonstrates XRPL’s ability to facilitate tokenized financial instruments and physical assets alike.  

Ripple USD Stablecoin Adds to XRPL’s Milestones  

Additionally, Ripple announced the launch of Ripple USD (RLUSD) on December 17, 2024, available on global exchanges. This stablecoin, issued on both the XRPL and Ethereum, highlights the ledger’s adaptability and role in bridging traditional and digital financial systems. With assets like Abrdn’s $4.77 billion U.S. dollar liquidity fund already tokenized on XRPL, the platform cements its position as a leader in the blockchain ecosystem.  

Now, 11 years after Schwartz’s silver redemption experience, XRPL has significantly evolved, integrating features such as automated market makers (AMMs) and enhanced programmability. This evolution underscores its potential to remain a preferred platform for tokenization and financial innovation.