Andrew De’Vilbiss, a crypto enthusiast and on-chain FX liquidity provider, recently emphasized XRP’s role within the XRP Ledger (XRPL). He stated , “XRP is the quote currency of the XRP Ledger. This is made possible by the auto-bridge feature.” According to him, this mechanism ensures that the XRPL prioritizes XRP liquidity before determining the transaction path. Additionally, De’Vilbiss pointed out that “each transaction costs XRP for gas.” As more tokenized assets are introduced onto the ledger and transaction volumes increase, the demand for XRP rises since higher activity leads to more fee generation. He added, “So the liquidity pools quoted to XRP are favored by the Blockchain. This is the core demand to invest in XRP.” The Auto-Bridge Feature and Liquidity Flow A key function of the XRPL is its auto-bridge feature , which ensures XRP acts as an intermediary asset, optimizing trading between different tokens on the network. This feature is designed to enhance liquidity efficiency and maintain XRP’s role at the center of XRPL’s financial transactions. David Schwartz, Ripple’s Chief Technology Officer, reinforced this point in a video attached to De’Vilbiss’s tweet. He explained that XRP is fundamental to the network’s liquidity structure, stating, “The XRP Ledger has features like auto-bridging that kind of put XRP in a central role, providing liquidity between other assets.” He further noted, “The more other assets there are, the more opportunities there are for XRP to bridge between those assets.” #Ripple $XRP XRP is the quote currency of the XRP ledger. This is made possible by the auto bridge feature. The XRP ledger itself seeks XRP liquidity first before it chooses the path finding method . Each transaction cost XRP for gas. This means the more tokenized assets on… pic.twitter.com/HBbgZXT4jv — Andrew De'Vilbiss (@DrewDeVilbiss) March 16, 2025 We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 XRP’s Role Amidst the Growth of Stablecoins and Tokenized Assets With the increasing presence of stablecoins and tokenized assets on the XRPL, questions have arisen regarding XRP’s continued relevance. Schwartz addressed this by stating, “It’s not a pivot away from XRP because the XRP is the XRP Ledger’s, like, native token, it’s, it’s gas token. It’s what you pay transaction fees with.” He said even as the network expands, XRP remains essential for transaction fees and liquidity functions. Schwartz also discussed how high-quality stablecoins could strengthen DeFi use cases on XRPL, including lending and real-world asset trading. He stated, “We think it’ll turbocharge some of those DeFi use cases, like lending real, real-world assets.” However, he emphasized that XRP’s role remains intact, particularly because of its function as the network’s bridge currency. The Long-Term Demand for XRP De’Vilbiss and Schwartz highlighted the increasing demand for XRP as the XRPL ecosystem grows. The introduction of more tokenized assets results in greater transaction volumes, which directly translates to higher usage of XRP for fees and liquidity provision. This dynamic reinforces XRP’s continued importance in the network, making it a key factor in XRPL’s long-term economic model. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post Ripple CTO: XRP Provides Liquidity Between Digital Assets appeared first on Times Tabloid .
