XRP Ledger Flips Ethereum to Become New King of Tokenized Commodities as XRP’s Utility Story Heats Up

A seismic shift just hit the $7.5B tokenization market. XRP Ledger, long pigeonholed as a cross-border settlement network, dethroned Ethereum in tokenized commodity growth in 2026.

Why Industry Giants Are Ditching Ethereum For XRPL

Data from Token Terminal and RWA Foundation shows just how dramatically the tokenization race has shifted. XRPL recorded roughly $2.2 billion in net capital inflows into tokenized commodities since the start of 2026, putting it ahead of Ethereum, which attracted about $1.6 billion during the same period.

The figures place XRP Ledger at the top of the commodity-tokenization leaderboard, marking a notable shift in the battle for real-world asset activity.

The gap widened significantly beyond the top two networks. Avalanche secured third place with roughly $334.5 million in net capital inflows, while BNB Chain was a distant fourth at just $57.5 million.

Tokenization essentially transforms ownership of real-world assets, from stocks and bonds to investment funds and real estate, into digital tokens recorded on a blockchain. Supporters argue that the process can make markets more efficient by speeding up settlement, cutting operational expenses, enabling 24/7 trading, and allowing traditionally large assets to be divided into smaller, more accessible ownership units.

The shift in the tokenization race reflects a fundamental difference in how the two networks handle asset issuance. Ethereum relies on smart contracts and variable gas fees to create and manage tokenized assets, while XRPL has asset issuance built directly into its core protocol. Its native IOU functionality enables real-world assets to be represented on-chain with transaction costs of less than a cent, while transactions can settle within roughly 3–5 seconds.

The energy sector emerged as the key catalyst behind XRPL’s rise above Ethereum in commodity tokenization. A significant portion of the network’s liquidity came from Justoken, a Latin American company that launched JMWH, a tokenized contract tied to electricity generation.

RWA.xyz data as of October 5, 2026, highlights just how rapidly activity on XRPL has accelerated. Monthly real-world asset transfer volume surged more than 224-fold to a record $7.03 billion, while the value of represented assets jumped 56% in just 30 days to $4.52 billion.

The network’s stablecoin market also expanded, reaching $1.25 billion in market capitalization, with the integration of Ripple’s native RLUSD playing a major role. Meanwhile, monthly stablecoin transaction volume climbed to approximately $5.01 billion, underscoring the growing flow of capital through XRPL.

XRPL Attracts Major RWA Players as Tokenization Momentum Builds

Momentum around XRPL extends beyond commodities, with several major players in the broader real-world asset market now tapping its infrastructure. Franklin Templeton has brought $48.3 million to the ecosystem, while Ondo Finance accounts for another $187.5 million. Middle Eastern developer DAMAC has also used XRPL to tokenize ownership interests tied to premium Dubai real estate projects, including Park Ridge Tower, Prive, and J One.

Ethereum, however, continues to lead the broader RWA market by total asset value, driven largely by its dominance in tokenized U.S. government bonds. The picture changes in physical assets and commodities, where XRPL is gaining notable traction among institutional and industrial players.