Ripple-backed custody supported the tokenization of $280 million in diamonds on the XRP Ledger, a development market participants say validates XRPL’s growing role in real‑world asset (RWA) issuance. However, XRP’s price remained range‑bound and technically vulnerable, leaving a gap between expanding on‑chain utility and immediate market reaction.
The diamond transaction by Ripple, demonstrates institutional use cases for high‑value tokenized assets, but it has not yet produced a durable lift in XRP’s spot price, according to market reports and price‑structure analysis compiled in early February.
A Ripple‑supported custody vehicle facilitated the $280 million diamond tokenization initiative in the UAE. The move adds to XRPL’s on‑chain RWA tally, which early‑February data put at roughly $2 billion and which some analyses project could rise to $3–$6 billion later in 2026.
The event has operational significance: tokenized transfers and new borrowing/yield features on XRPL increase protocol activity and consume XRP for transaction fees, creating native demand. At the same time, the transaction has not eliminated near‑term selling pressure from large holders and institutional flows, creating a mixed supply/demand picture for the token. XRP traded roughly in a $1.56–$1.89 intraday range while testing a critical support band.
XRP tokenization milestone and immediate market takeaways
Bullish inputs include the XRPL RWA expansion, the $280 million diamond issuance, and continued institutional interest evidenced by spot ETF inflows. Offseting these are concentrated selling and distributions by some institutional holders, which together have kept momentum indicators in bearish posture.
Some scenarios project multi‑dollar targets if adoption and routing volumes accelerate materially. Conservative models, reflecting current sentiment and technical fragility, place year‑end outcomes nearer to $0.92–$1.05 unless demand zones hold and selling abates.
The diamond tokenization underscores XRPL’s product fit for high‑value RWAs and highlights practical considerations: custody arrangements, licensing in relevant jurisdictions, KYC/AML pipelines for off‑chain counterparties, and ongoing on‑chain transaction costs that use XRP
For investors and compliance officers, the near‑term risk is market structure: a decisive breach below the $1.50 band could open downside to $1.20 or lower, while sustained institutional inflows would be required to convert XRPL utility into sustained price appreciation.
Near‑term price resolution will depend on whether broader market sentiment shifts and institutional positioning aligns with the ledger’s expanding use cases.
