Ripple wants to make XRP blockchain development more decentralised with new funding routes

Crypto payments firm Ripple wants to transition funding for the development of the XRP Ledger blockchain to a more distributed model, where independent organisations, venture partners, and community-led initiatives play a larger role in supporting builders.

The $40 billion company, which uses the XRP cryptocurrency for cross-border payments, announced the shift, along with new developer funding programmes, in a Thursday blog post.

“As the ecosystem matures, the focus is shifting toward expanding access to funding through more distributed and independent pathways so builders have multiple avenues to scale,” Ripple said in the post.

Historically, much of the XRP Ledger ecosystem funding flowed through Ripple-supported initiatives. The company said its goal is to create a healthier ecosystem where builders can access funding through multiple channels.

The development comes as Ripple tries to shake the impression that it exerts too much influence and control over the XRP Ledger.

While Ripple and the XRP Ledger are distinct, the two have been close for much of their existence.

After launching the XRP Ledger in 2012, many of its creators went on to found Ripple or join the firm as executives.

Ripple is also the biggest owner of XRP. The firm said it held $57 billion worth of the cryptocurrency — around two-third of all tokens in circulation — as of March 2025, the last time it reported its holdings publicly.

Ripple is also a major XRP Ledger developer.

New funding routes

In its blog post, Ripple outlined several routes it hopes will help diversify developer funding.

The firm said it will launch a new FinTech Builder Programme designed to support startups building financial applications on the XRP Ledger, including for stablecoin payments, credit infrastructure, tokenisation, and regulated financial services.

In June, the XRP Ledger also got its own decentralised autonomous organisation called XAO DAO. Its stated goal is to boost community voices and foster a culture of rapid experimentation through microgrant funding.

The XRPL Commons, a non-profit that supports XRP Ledger development, and XRP Asia, an initiative to support XRP developers across the Asia-Pacific region, will continue to support development.

Ripple’s many university partnerships, and venture capital partners Dragonfly Capital, Pantera, and Franklin Templeton, among others, will also play key funding roles, the firm said.

“The goal is to ensure that no single organisation becomes the sole gatekeeper for ecosystem support,” Ripple said.

Bleeding deposits

Despite hosting the $84 billion XRP token, the XRP Ledger has struggled to grow its DeFi ecosystem.

Since July, deposits to XRP Ledger protocols have declined from a peak of $120 million to just $49 million.

In October, Ripple chief technical officer David Schwartz stepped down. During Schwartz’s 14 years at the firm he played a key role in several XRP Ledger DeFi updates, including the launch of a native automated market maker and the introduction of programmable tokens.

There are developments that could turn the blockchain’s fortunes around, however.

Ripple developers have discussed plans to introduce XRP staking, a feature that could boost the blockchain’s DeFi ecosystem.

Ripple is also building the infrastructure for a lending market on the XRP Ledger. The hope is that financial institutions will use the lending market to borrow funds from retail investors.

The feature entered voting on January 28, and requires an 80% supermajority among XRP Ledger validators to pass.

Tim Craig is DL News’ Edinburgh-based DeFi Correspondent. Reach out with tips at tim@dlnews.com.