All XRP holders need to pay attention to this.

In a detailed post shared on X, cryptocurrency commentator and XRP supporter, All Things XRP, made a case for a groundbreaking shift in understanding the value of XRP. This argument no longer focuses on traditional payments but instead turns to the tokenization of real assets (RWA) on the XRP Ledger (XRPL), which is the main driving force behind the long-term price of XRP. According to the post, this conversion process has the potential to significantly change the supply and demand of the token by permanently locking a large volume of XRP.

Encryption is the core utility driver. The focus of the post is on the process of tokenization, defined as the conversion of tangible assets—such as real estate, bonds, or commodities—into digital tokens that are issued and managed on the XRPL. These tokens are described as programmable, globally tradable, settled within 3–5 seconds, and transferred at an average cost of $0.0002. For example, a house worth 1 million dollars can be tokenized into 1 million HOUSE tokens. Through the decentralized infrastructure of XRPL, users can buy fractional shares, earn profits, and trade these tokens using XRP as the underlying asset. All Things XRP emphasizes that the true meaning does not lie in the movement of XRP as a trading token, but in how XRP is locked and removed from circulation in many essential mechanisms for tokenization. This is the core of the argument—that XRP is being permanently removed and that this structural lock is the real catalyst for future price increases. XRP lock mechanism The post describes three main mechanisms by which XRP is locked during the encoding process. First, the Automated Market Maker groups (AMM) hold XRP in smart contracts to enable trading liquidity between token pairs such as XRP and tokenized real estate assets. This is identified as the most significant contributing factor to the locking of XRP. Secondly, XRP can be sent as collateral in decentralized lending protocols. Although stablecoins like RLUSD may become prominent in these environments, All Things XRP believes that XRP will continue to play a central role, especially as decentralized finance expands on XRPL. Thirdly, XRP is required in small amounts to open accounts and establish trust lines—specifically, 1 XRP per account and 0.2 XRP per trust line. While this may seem small at an individual level, this demand becomes significant at scale. A specific example is presented regarding the tokenization of a real estate worth 1 million dollars, with an AMM XRP/HOUSE pool seeded with 24,390 XRP. When users participate in the market and exchange XRP for HOUSE tokens, more XRP will be added to the pool and remain locked. If replicated across 1,000 similar properties, this single use case could result in 24.39 million XRP being locked. Quantifying long-term impact The post cites forecasts from Ripple, stating that the total value of crypto assets will reach $6 trillion by 2025. If XRPL captures just 10% of that market—$600 billion—then based on current mechanisms, about 17.58 billion XRP could be locked: 14.6 billion in AMM, 2.9 billion in lending, and 20 million in reserves. This figure would account for more than 30% of the current circulating supply of XRP. Looking ahead, this post will extend to 2033, when global crypto assets could reach $18.9 trillion. If the market share of XRPL reaches 15%, approximately 28.37 billion XRP could be locked. This figure would account for nearly half of the total circulating supply, fundamentally altering the availability of the token and market dynamics. The structural change in the story of XRP All Things XRP concludes that this phenomenon should not be regarded as a theory or speculation. Instead, it is presented as an inherent result of the design of XRPL. As more real assets are tokenized, more XRP is absorbed into the ecosystem and locked away permanently. According to the post, this structural supply reduction creates a slow but inevitable supply shock, which will support the price growth of XRP over time. This argument places the developing utility of XRP within the context of a broader financial infrastructure, asserting that the long-term price increase of this token will not depend much on retail speculative activity or trading volume, but rather on its role in the evolving global cryptocurrency market. The commentary concludes with the assertion that the payment story revolving around XRP is just the beginning, and that the tokenization of real-world assets is the real story behind the future trajectory of this asset.