Ripple’s ongoing expansion of the XRP ecosystem is gaining momentum with two major developments: Japanese cryptocurrency exchange Bitflyer is set to introduce XRP leveraged trading through Contracts for Differences (CFDs), while Ripple Labs has unveiled its institutional DeFi roadmap to enhance the XRP Ledger (XRPL). Bitflyer’s decision to offer XRP CFDs alongside Bitcoin and Ethereum reflects growing demand for XRP trading options in Japan, a key market for the cryptocurrency. Meanwhile, Ripple’s latest initiative aims to position XRPL as a regulated, scalable, and institution-friendly blockchain by introducing a permissioned decentralized exchange (DEX), a credit-based lending protocol, and a new token standard (MPT).
Ripple Unveils Roadmap for Institutional DeFi on XRP Ledger
Ripple Labs has announced a strategic roadmap aimed at transforming the XRP Ledger (XRPL) into a premier institutional decentralized finance (DeFi) ecosystem. The company’s Feb. 25 blog post outlined key developments that will position XRPL as a regulated, scalable, and secure blockchain network for financial institutions looking to leverage DeFi solutions.
This initiative represents Ripple's latest move to strengthen XRPL's capabilities, focusing on critical DeFi applications such as a permissioned decentralized exchange (DEX), a credit-based lending protocol, and a new multi-purpose token (MPT) standard. These innovations will integrate compliance measures through XRP Ledger’s "decentralized identifiers," ensuring seamless regulatory adherence within the network’s smart contract framework.
Ripple’s institutional DeFi push builds on XRPL’s existing infrastructure, including price oracles and an automated market maker (AMM). These tools provide essential liquidity and transparency, critical for financial institutions navigating blockchain-based transactions.
By launching a permissioned DEX, Ripple aims to address compliance concerns that have long hindered institutional adoption of decentralized trading platforms. Unlike permissionless exchanges, which allow unrestricted access to users worldwide, permissioned DEXs implement regulatory safeguards, ensuring that only verified institutions and accredited investors participate.
The upcoming credit-based DeFi lending protocol is another step toward institutional adoption. Traditional DeFi lending models rely on overcollateralization, which can limit capital efficiency. Ripple’s approach—leveraging credit-based mechanisms—could introduce a new paradigm that better aligns with institutional financing models.
Meanwhile, the introduction of the MPT standard will provide enhanced tokenization capabilities, allowing institutions to issue and manage digital assets more flexibly. This new token standard aligns with the growing demand for tokenized real-world assets (RWAs), a sector projected to reach a $30 trillion market opportunity.
Unlike Ethereum, which has an extensive ecosystem of third-party smart contracts, XRPL has historically maintained a more controlled development model. Many of its key applications, including the AMM, have been deployed by Ripple’s core developer community rather than independent developers. The network’s DEX, which launched in 2024, has processed over $1 billion in crypto swaps, according to Ripple CEO Brad Garlinghouse.
Institutional DeFi and the XRP ETF Narrative
Ripple’s pivot toward institutional DeFi aligns with broader industry trends favoring regulatory-compliant blockchain solutions. The potential for tokenized RWAs, in particular, has captured the attention of major financial institutions. Colin Butler, Polygon’s global head of institutional capital, described RWAs as a $30 trillion opportunity, highlighting the immense growth potential in this space.
Meanwhile, the political landscape in the US could play a decisive role in shaping XRP’s future. Trump has pledged to transform the US into the "world’s crypto capital" and is expected to appoint crypto-friendly regulators to key financial oversight positions. This shift has already had a tangible impact, with the US Securities and Exchange Commission (SEC) recently dropping its investigation into Uniswap, signaling a potential pivot in its approach toward digital assets.
Ripple also stands to benefit from the growing demand for cryptocurrency exchange-traded funds (ETFs). Several asset managers have reportedly filed applications for XRP ETFs, a development that could bring billions in institutional inflows. Analysts at JPMorgan have suggested that a favorable regulatory environment under Trump could accelerate the approval of these products.
Furthermore, speculation continues to mount regarding the fate of the SEC’s long-running lawsuit against Ripple. Some experts believe the case, which has been ongoing since 2022, could be paused or even dropped entirely under a new administration.
Ripple’s institutional DeFi roadmap marks a significant evolution for XRPL, positioning it as a blockchain network tailored for regulatory-compliant financial applications. By integrating a permissioned DEX, credit-based lending, and enhanced tokenization through MPT, Ripple is making a strong play for institutional adoption.
While XRP’s price momentum and potential ETF listings provide reasons for optimism, Ripple must overcome its historical challenges, including limited third-party smart contract support and lower DeFi adoption compared to rivals like Ethereum. However, with shifting regulatory winds in the US and a growing appetite for institutional DeFi solutions, XRP Ledger’s institutional roadmap could prove to be a pivotal step in its long-term growth.
Bitflyer to Introduce XRP CFDs, Expanding Leverage Trading Options for Japanese Traders
In other news, Bitflyer, one of Japan’s largest cryptocurrency exchanges, has announced its plans to introduce leveraged trading for XRP Contracts for Differences (CFDs), marking a significant expansion of its trading offerings. The exchange, which previously only supported CFD trading for Bitcoin, will now include Ethereum (ETH) and XRP in its leveraged trading product, bitFlyer Crypto CFD.
This move represents a major development for XRP, the fourth-largest cryptocurrency by market capitalization, as it gains increased trading accessibility and exposure in one of the world's most crypto-friendly markets.
Contracts for Differences (CFDs) allow traders to speculate on the price movements of assets without owning the underlying cryptocurrency. These financial instruments enable traders to leverage their positions, amplifying both potential gains and risks. CFDs are also used for hedging, allowing investors to manage their exposure to price volatility.
Bitflyer made the announcement via a recent tweet, stating that XRP and ETH leveraged trading would be launching soon. The translated tweet read:
"ETH & XRP Leverage trading coming soon. BitFlyer's leveraged trading product is 'bitFlyer Crypto CFD.' We will start handling ETH and XRP soon. We will continue to improve our services and provide our customers with a variety of investment opportunities."
Currently, bitFlyer Crypto CFD only supports BTC-CFD/JPY trading, but with this expansion, the following pairs will be introduced:
ETH-CFD/JPY
XRP-CFD/JPY
The introduction of XRP leverage trading could attract both retail and institutional traders looking to take advantage of Japan’s well-regulated crypto environment while gaining exposure to XRP's price movements without having to directly hold the token.
The Bitflyer announcement comes at a time when Ripple is pushing major developments for the XRP Ledger (XRPL). In September, Ripple, in collaboration with the XRP community, revealed its plans to introduce permissionless programmability to the network, a move that could significantly expand XRPL's use cases.
To achieve this, Ripple has researched multiple virtual machine (VM) options for XRPL programmability and has determined that Web Assembly (WASM) is the most suitable. WASM offers a balance of flexibility, performance, and integration capabilities, making it the preferred choice over other options.
Ripple CTO David Schwartz has emphasized a cautious, incremental approach to programmability, avoiding drastic changes that could disrupt the network. Instead, RippleX, Ripple's development arm, recently introduced "Extensions" as the first step toward programmability.
One of the most anticipated developments is the XRPL EVM sidechain, which will operate alongside the XRP Ledger, enhancing its smart contract capabilities without replacing XRPL’s mainnet programmability. This innovation will allow Ethereum developers to interact with XRPL while keeping the network optimized for fast and low-cost transactions.
XRP’s Growing Institutional Adoption in Japan
Japan has historically been one of the most supportive markets for XRP, with Ripple having strong ties to major financial institutions and regulators in the country. SBI Holdings, one of Japan’s leading financial services firms, has been a long-time supporter of XRP and continues to promote its adoption.
The introduction of XRP CFDs on Bitflyer further reinforces the asset’s institutional recognition in Japan. As more traders gain access to leveraged XRP trading, market liquidity could improve, increasing trading volumes and further solidifying XRP's position as a key asset in Japan’s crypto ecosystem.
Moreover, with the regulatory landscape shifting in favor of crypto-friendly policies, the market demand for XRP-related financial products—such as exchange-traded funds (ETFs) and tokenized assets—could continue to grow.
