XRP Ledger Enhancements and ETF Progress Fuel Growing Institutional Interest

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Ledger (XRPL) is experiencing notable advancements that are poised to boost both its applicability and user uptake, with the Multi-Purpose Tokens (MPTokensV1) amendment set to go live on October 1, 2025 11 More Days for Major XRP Ledger Amendment Details [ 1 ]. This update brings a new type of fungible token specifically designed for uses such as stablecoins, streamlining the process compared to the ledger’s traditional IOUs. MPTs embed metadata straight onto the XRPL blockchain, decrease storage requirements, and remove the need for bidirectional debt, simplifying token handling Multi-purpose Tokens [ 2 ]. The amendment will be implemented following the achievement of the necessary validator majority, as the 14-day consensus period has now been fulfilled 11 More Days for Major XRP Ledger Amendment Details [ 1 ].

There has also been a surge in institutional enthusiasm for XRP, spurred by a series of ETF filings currently under review by the SEC. The ProShares Ultra XRP ETF, which offers 2x leveraged futures exposure, debuted on July 18, 2025, and recorded $37.7 million in first-day trading. Several spot XRP ETFs from Grayscale, 21Shares, Bitwise, and

are awaiting regulatory decisions, expected between October and November 2025 Full List of XRP ETFs: Filings, Dates, Deadlines, and More [ 3 ]. Experts believe that regulatory approval could propel XRP toward the $5–$15 range, especially if multiple spot ETFs receive approval. The CME Group has also seen unprecedented activity in XRP futures, with open interest peaking at $43 million in July 2025, highlighting rising institutional interest in regulated XRP products.

Beyond payments, XRP’s ecosystem is broadening into decentralized finance (DeFi). Enosys has introduced the first protocol for minting stablecoins backed by XRP on Flare, enabling users to generate overcollateralized stablecoins using FXRP (a wrapped XRP token) without liquidating their XRP holdings Enosys Loans Lets Users Mint First XRP-Backed … [ 6 ]. Built on a

V2 fork, the protocol incorporates Flare’s Time Series (FTSO) for decentralized pricing and intends to add support for staked XRP (stXRP) in upcoming updates 3 Signs of Fresh Capital Flowing Into the XRP Ecosystem in July [ 7 ]. This move represents a significant milestone for XRP’s expansion into yield-focused DeFi services, extending its role beyond global payments.

XRPL network activity has reached new heights, surpassing 7 million active accounts by August 2025 11 More Days for Major XRP Ledger Amendment Details [ 1 ]. July saw the creation of 10,000 new accounts daily, the highest rate since February 2025, while total value locked (TVL) reached a record $92 million, propelled by the ledger’s decentralized exchange and the XRPL EVM Sidechain. The EVM Sidechain, launched in July, introduced support for Ethereum-compatible smart contracts, resulting in the deployment of over 1,300 contracts and more than 17,000 active addresses. These trends highlight XRPL’s expanding influence within the DeFi space.

Ripple’s latest proposal for Confidential MPTs seeks to bring enhanced privacy to the ledger XRP Holders Can Mint Stablecoins via Enosys Loans on Flare [ 5 ]. Leveraging EC-ElGamal encryption and zero-knowledge proofs, the amendment aims to enable private token transfers while maintaining public transparency through supply limits and rules enforced by validators. In contrast to privacy coins such as Monero, Confidential MPTs preserve issuer oversight for regulatory compliance, with features for selective information sharing and asset clawback XRP Holders Can Mint Stablecoins via Enosys Loans on Flare [ 5 ]. Currently under discussion, the proposal would require the backing of 80% of validators for mainnet implementation XRP Holders Can Mint Stablecoins via Enosys Loans on Flare [ 5 ].

Overall sentiment in the market is cautiously optimistic. XRP’s dominance index (XRP.D) climbed above 5% in July 2025, signaling a larger share of the crypto market despite broader volatility. Nonetheless, analysts caution about short-term risks from leveraged futures, as trading notional reached $1.9 billion and 1.6 million contracts were exchanged during July 11 More Days for Major XRP Ledger Amendment Details [ 1 ]. The future direction for XRP will likely be shaped by the interplay of institutional participation, technical innovations, and regulatory developments.