The XRP Ledger (XRPL) is gaining ground in the race to tokenize real-world assets, with its market capitalization for tokenized assets jumping more than 124% in the first quarter of 2026 to approximately $2.25 billion. This growth has fueled speculation among market observers that institutional capital may be flowing away from Ethereum, long the dominant blockchain for financial asset tokenization. However, the evidence remains preliminary, and both networks are likely competing for different segments of a rapidly expanding market.

Is Capital Really Shifting From Ethereum to XRP Ledger?

The perception that funds are moving "quietly" from Ethereum to XRPL is gaining traction among some analysts, but it remains largely unconfirmed by authoritative on-chain data platforms or official reports. Analyst Ledger Man has suggested that rising interest in real-world asset (RWA) tokenization is drawing more capital into the XRPL ecosystem, yet this claim is currently based primarily on market observations rather than verified data.

Ethereum continues to hold the largest share of the tokenized asset market today. Financial institutions have long preferred Ethereum and compatible networks due to more mature infrastructure, a larger developer community, and deeper liquidity. Many major financial institutions' tokenization projects remain primarily deployed within the Ethereum ecosystem, suggesting that current competition is less about one network replacing another and more about different blockchains capturing distinct market segments.

What Is Driving XRPL's Growth in Tokenization?

Several factors are contributing to XRPL's expansion in the RWA space. Ripple's stablecoin RLUSD, which has expanded to multiple blockchain networks through Wormhole integration, is playing a key role in attracting developers and institutions to the ecosystem. This cross-chain strategy provides additional liquidity options and is part of XRPL's broader effort to appeal to institutional use cases.

Leadership at Ripple is also signaling ambitious plans for the ecosystem. David Schwartz, Ripple's Chief Technology Officer, recently stated that tokenized securities, money market funds, loans, and repurchase agreements could all become important components of the XRPL ecosystem in the future. These asset classes represent some of the most valuable segments of traditional finance, suggesting that XRPL is positioning itself to compete directly with Ethereum for institutional adoption.

How Different Blockchains Are Competing for Tokenization Market Share

• Infrastructure Maturity: Ethereum benefits from years of development, a larger developer community, and deeper liquidity pools, making it the default choice for many institutions launching tokenization projects.
• Cross-Chain Connectivity: XRPL is leveraging bridge protocols like Wormhole to expand its stablecoin reach across multiple networks, creating additional entry points for institutional users.
• Asset Class Focus: Rather than competing head-to-head, different blockchains are targeting specific segments of the RWA market, from securities and funds to loans and repurchase agreements.

The competition between XRPL and Ethereum reflects a broader shift in the crypto industry. Tokenization of real-world assets has become one of the fastest-growing areas, with banks, asset management firms, and fintech companies continuously testing on-chain versions of traditional financial products. As more institutions enter the space, competition among public blockchains around RWA is expected to intensify further.

What remains clear is that RWA is positioning both XRPL and Ethereum at the center of the next phase of on-chain financial competition. While the market currently lacks cross-verified data to confirm whether large-scale funds have shifted from Ethereum to XRPL, the growth trajectory of both networks suggests that institutional tokenization is becoming a genuine focal point for blockchain competition rather than a niche experiment.