XRP Ledger Can Tokenize Gold. Here’s the Proof

Crypto researcher SMQKE recently confirmed two developments tied to Ripple and the XRP Ledger. His post on X read, “Yes, the XRPL can tokenize gold and Ripple is authorized to operate in the UK as an FCA-authorized fintech company.” SMQKE added that documentation backed both claims.

Ripple’s UK regulatory status stems from a press release confirming new permissions from the Financial Conduct Authority.

Earlier in the year, the company received an Electronic Money Institution licence and a Cryptoasset Registration. These approvals let Ripple scale its payments operations across the UK. The release stated the licences “enable Ripple to expand its payments offerings, reinforcing commitment to global regulatory compliance.”

Gold Tokenization on the XRP Ledger

The second claim in SMQKE’s post concerns the XRPL’s capacity to tokenize physical assets. The ledger supports issuing custom tokens, a feature already used for gold and silver. In 2024, Meld Gold integrated with the XRPL to issue tokenized gold and silver. Each token represents 1 gram of metal held with vault providers.

The XRPL runs a decentralized exchange with auto-bridging liquidity. This function allows gold tokens to trade against XRP or other assets natively on the ledger. The XRPL also includes compliance tools. Issuers can freeze assets or require authorization for token holders, mirroring features found on other asset-tokenization networks like Stellar.

The XRPL’s consensus mechanism, known as the Unique Node List, delivers finality in about 4 seconds. This speed supports real-time settlement for tokenized assets. The ledger’s scripting capabilities remain less flexible than Ethereum’s smart contracts. For straightforward token issuance like gold-backed assets, this limitation carries little weight. The XRPL’s payment infrastructure already handles the core functions gold tokenization requires.

Institutional Interest Builds

Large financial institutions have begun exploring tokenized gold independently. HSBC recently launched its own tokenized gold offering, built on a private distributed ledger rather than a public network like the XRPL.

Ripple’s custody technology, gained through its acquisition of Metaco, is being used for secure storage of digital assets. This custody infrastructure positions Ripple to support institutional-grade tokenization efforts, separate from HSBC’s private ledger approach.

Ripple’s broader network, RippleNet, typically handles bank and payment integrations rather than asset tokenization. The open-source XRPL operates as the platform where tokenized assets like Meld Gold’s offerings actually exist. This distinction separates Ripple the company from XRPL the public ledger, though the two remain closely linked through Ripple’s development contributions and business activity.

Regulatory Compliance Meets Asset Innovation

Ripple’s FCA registration and the XRPL’s gold tokenization capabilities represent separate but connected developments. The UK licences strengthen Ripple’s standing as a regulated payments provider.

The gold tokenization use case demonstrates the XRPL’s technical capacity beyond simple payments. Together, these developments show a company building regulatory credibility while its underlying ledger technology finds practical applications in real-world asset markets.