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XRP Ledger faces test as tokenized Treasuries sit idle on XRPL

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XRP Ledger faces test as tokenized Treasuries sit idle on XRPL

XRP Ledger now holds most tokenized U.S. Treasury supply, but trading and settlement still favor Ethereum and layer-2 networks, leaving XRPL’s role in flux.

XRP Ledger holds approximately 63% of tokenized U.S. Treasury bill token supply, yet trading activity remains predominantly on Ethereum and layer-2 networks, according to blockchain data tracked by RWA.xyz.

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The distribution gap highlights a emerging divide in the tokenized asset market between where digital securities are issued and where they are actively traded, industry observers noted.

Two recent developments have positioned XRPL as a potential venue for real-world asset tokenization. Aviva Investors announced a partnership with Ripple to tokenize traditional fund structures on the ledger, describing the initiative as a multi-year project. The asset manager characterized tokenization as transitioning from experimental phases to large-scale production over the next decade.

Additionally, OpenEden’s TBILL token, a vault token backed by short-dated U.S. Treasuries with 1:1 backing, maintains a majority of its circulating supply on XRPL, according to data from RWA.xyz.

However, transfer volume data reveals limited on-chain activity for TBILL on XRPL compared to Ethereum and certain layer-2 networks, according to the same dataset. The pattern suggests tokens are being issued and held on XRPL but moved and utilized on other blockchain networks.

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Tokenized U.S. Treasuries refer to tokenized fund shares or vault tokens backed by short-dated U.S. government securities, held and transferred on blockchain networks. The sector has grown as institutional investors explore blockchain-based settlement infrastructure.

The Aviva-Ripple partnership focuses on tokenizing traditional fund structures rather than exclusively Treasury bills, according to the announcement. The companies have not yet launched a live tokenized fund product with a prospectus and eligible investor base.

XRPL has emphasized built-in compliance tools and near-instant settlement capabilities in its positioning to institutional clients, according to public statements from Ripple and partner firms. The approach targets regulated distribution channels rather than decentralized finance composability.

Stablecoin transfer activity on XRPL has grown in parallel with tokenized Treasury initiatives, according to on-chain metrics. The combination of stablecoins for settlement and Treasury tokens for yield represents a potential operational model for institutional users.

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Ethereum and layer-2 networks currently maintain more developed on-chain liquidity infrastructure for tokenized assets, according to market participants. Tokenized Treasuries on those networks can be swapped against stablecoins and routed through institutional market makers at larger scale.

The tokenized Treasury market is evolving toward use cases in collateral and settlement workflows within the broader financial system, according to industry analysts. Institutions building lending and settlement flows have generally defaulted to networks with existing collateral infrastructure and liquidity depth.

The next 30 to 90 days could provide clearer signals on XRPL’s trajectory in the tokenized Treasury market, according to market observers. Key indicators include whether transfer volumes for Treasury tokens on XRPL rise materially to match balance concentrations, whether additional regulated issuers launch products on the network, and whether Aviva progresses from partnership intention to a live tokenized fund with measurable holder counts.

Current data shows XRPL holds significant token supply and growing stablecoin activity, while trading and transfer volumes remain concentrated on Ethereum and layer-2 networks, according to blockchain analytics platforms.

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Crypto World

Telegram Has Been Downloaded Over 50M Times in Iran, Despite Ban: Durov

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Decentralization, Privacy, Liberty, Telegram, Cypherpunks, Pavel Durov

The Iranian government’s attempt to block the Telegram messaging application in the country has backfired, as users find ways to circumvent national firewalls and online controls, according to Telegram co-founder Pavel Durov.

“Iran banned Telegram years ago,” Durov said on Friday; however, tens of millions of users in the country have managed to access the application via virtual private networks (VPNs) and other similar tools, he added.

VPNs route web traffic through servers distributed around the globe to mask the true Internet Protocol (IP) addresses of users and obscure their locations. This allows individuals with VPN access to bypass national online restrictions. Durov said:

“The government hoped for mass adoption of its surveillance messaging apps, but got mass adoption of VPNs instead. Now, 50 million members of the digital resistance in Iran are joined by over 50 million more in Russia.”

Decentralization, Privacy, Liberty, Telegram, Cypherpunks, Pavel Durov
Source: Pavel Durov

Decentralized technologies like blockchain, crypto and encrypted messaging applications can mitigate or neutralize state-imposed online restrictions and surveillance infrastructure, promoting individual liberty, proponents of decentralized technology say.

Related: Global turmoil pushes uptake of decentralized messengers, social media

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Users turn to decentralized alternatives amid online blackouts

The government of Iran imposed a nationwide internet blackout in January 2026, amid growing protests and civil unrest, which is still in effect due to the ongoing war between Israel, the United States and Iran.

Residents in the country can still access the internet through Starlink, a satellite-based network, or communicate via BitChat, a messaging application that uses Bluetooth radio waves to form a mesh network between devices.

BitChat’s mesh network transforms each device into a relay node that transfers data to other devices running the application within range, bypassing online and satellite-based systems entirely.

Decentralization, Privacy, Liberty, Telegram, Cypherpunks, Pavel Durov
The components of the BitChat messaging application tech stack. Source: GitHub

The government of Nepal imposed a social media ban in September 2025 amid growing protests, causing a spike in BitChat downloads.

Bitchat was downloaded over 48,000 times in Nepal the week of the social media ban, and the government of Nepal was toppled by protestors that same month.

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The application recorded a similar download spike in Madagascar amid protests, which also occurred around the same time as the political revolution in Nepal.

Magazine: Did Telegram’s Pavel Durov commit a crime? Crypto lawyers weigh in