“All 100 Billion $XRP Have Been Minted”
21Shares also pointed out that $XRP’s supply structure differs from many other cryptocurrencies. It was stated that all 100 billion $XRP were produced when the $XRP Ledger became operational, and that it is no longer possible to create new $XRP. Furthermore, it was explained that the total supply decreases over time due to the burning of a small amount of $XRP with each transaction, and that more than 14 million $XRP have been removed from circulation in this way to date.
The analysis also specifically highlighted the differences between $XRP, $XRP Ledger, and Ripple. According to the analysis, XRPL is an open and decentralized blockchain network, with $XRP as the network’s native asset, while Ripple is a private technology company developing payment and custody infrastructure on the network.
21Shares also argued that the widespread view that Ripple controls the network is incorrect. According to the report, Ripple operates only one of the 35 validators on the $XRP Ledger’s default trusted validator list. It stated that anyone can develop applications on the network, and the ecosystem includes exchanges, banks, fintech companies, and independent developers.
Regarding the distribution of $XRP during its founding period, it was recalled that the founders of the $XRP Ledger allocated 80 billion of their total 100 billion $XRP to Ripple for the development of the ecosystem. It was stated that Ripple locked 55 billion $XRP in escrow accounts in 2017, that approximately 34 billion $XRP are currently held in these accounts, and that the tokens are released into circulation according to a publicly announced schedule.
According to 21Shares, $XRP’s primary use case remains acting as a bridge asset in cross-border payments. Unlike traditional systems where money transfers occur through multiple correspondent banks, it’s stated that a currency can be converted to $XRP and then to the target currency within seconds. Organizations such as Japan-based SBI Holdings and Malaysia-based payment company Tranglo are reportedly using the $XRP Ledger infrastructure for this purpose.
However, it was noted that the XRPL ecosystem has expanded beyond payment systems. The network boasts a built-in decentralized exchange infrastructure, supports token issuance, and is increasingly being used for stablecoins and tokenized real-world assets. The report stated that Ripple’s RLUSD stablecoin has reached a size of approximately $1.6 billion, while the total value of tokenized assets on XRPL is around $4 billion.
21Shares added that while assets on XRPL don’t have to be traded directly in $XRP, every transaction on the network—whether payment, exchange, or token issuance—is paid for and then burned in $XRP.
The report also highlights the fundamental difference between $XRP and Bitcoin, stating that Bitcoin is designed as a digital store of value independent of the traditional financial system, while $XRP aims to be part of the money transfer infrastructure within the financial system. According to 21Shares, this distinction is critical for understanding how $XRP works and how investors should evaluate it.
*This is not investment advice.
