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XRPL Issued Asset

Sovereign Assets • Layer 1s • Payment Networks

trustline-based token on XRP Ledger

XRPL Issued Asset refers to any custom digital token created and managed on the XRP Ledger (XRPL) by third-party issuers, rather than being the native XRP coin itself. These assets—sometimes called IOUs—can represent stablecoins, utility tokens, digital dollars, silver, gold, or anything else, and are made possible via XRPL’s built-in trustline and issuer system. Users must establish trustlines to interact with specific assets, and each asset is linked to an issuing account’s address.

Use Case: A fintech company issues a USD-backed stablecoin on XRPL, allowing users to hold and transfer “USD” as an XRPL-issued asset, with all transactions settled on the ledger.

Key Concepts:

  • Smart Contract Token — XRPL-issued assets are programmable tokens managed by issuer accounts
  • Token Standard — XRPL supports unique standards like IOU (issued currency) and XLS-20 (NFTs)
  • Fungibility — Most XRPL issued assets are fungible, though XLS-20 supports NFTs
  • Custom Minting — Issuers control creation and supply of new assets
  • XRPL System Overview — Complete architecture of the XRP Ledger ecosystem
  • Native Asset — XRP is the native asset; issued assets require trustlines
  • $RLUSD — Ripple’s USD-backed stablecoin issued on XRPL
  • AMM — XRPL’s native automated market maker supports issued assets
  • NFT — XLS-20 standard enables non-fungible issued assets
  • Token Interoperability — Issued assets can interact across XRPL ecosystem
  • $XRP — Native asset used for fees and bridging on XRPL

Summary: XRPL issued assets unlock tokenization, stablecoins, and programmable value on the XRP Ledger. By enabling any entity to create digital representations of real-world or synthetic value, they expand the network’s utility far beyond native XRP.

Aspect XRPL Issued Asset XRP (Native)
Origin Created by any XRPL account (issuer) Built into protocol
Fungibility Usually fungible, sometimes NFT Fungible
Transfer Method Requires trustline to issuer Direct wallet-to-wallet
Examples $RLUSD, $ELS, $SOLO, XLS-20 NFTs XRP
Supply Control Managed by issuer account Protocol-defined and fixed

How Trustlines Work

the foundation of XRPL issued assets

What Is a Trustline?
• Permission to hold an issued asset
• Explicit link to issuer’s address
• Sets maximum balance you’ll accept
• Required before receiving tokens
• Reserves 2 XRP per trustline
• Can be removed when balance = 0
Why Trustlines Exist
• Prevents spam tokens in wallet
• User controls what they hold
• Defines issuer relationship
• Enables counterparty transparency
• Protects from unwanted assets
• Built-in consent mechanism
Setting Up Trustlines
• Use Xaman wallet
• Find issuer’s address
• Add trustline for specific asset
• 2 XRP reserve locked
• Ready to receive tokens
• Can set custom limits
Trustline Risks
• Issuer can freeze assets
• Issuer can clawback (if enabled)
• Issuer reputation matters
• Check issuer’s freeze settings
• Verify asset is legitimate
• Research before trusting
The Design: Trustlines are a core innovation of XRPL. Unlike Ethereum where any token can be airdropped to your wallet, XRPL requires explicit consent. This prevents spam but requires understanding: no trustline = can’t receive the asset.

Popular XRPL Issued Assets

notable tokens on XRP Ledger

Asset Type Issuer Use Case
$RLUSD Stablecoin Ripple USD-backed payments
$SOLO Utility Token Sologenic Tokenized securities platform
$ELS Utility Token Elysian NFT marketplace ecosystem
$CSC Utility Token CasinoCoin Gaming and gambling
$CORE Utility Token Coreum Smart contract layer
Bitstamp USD IOU Bitstamp Exchange-backed USD
Due Diligence: Always research issuers before setting trustlines. Established projects like Ripple ($RLUSD) and Sologenic ($SOLO) have track records. Unknown issuers may represent higher risk—verify legitimacy before trusting.

XRPL Issued Assets vs ERC-20 Tokens

comparing token standards across chains

Feature XRPL Issued Asset ERC-20 (Ethereum)
Consent Required Yes (trustline) No (can receive unsolicited)
Creation Method Native ledger feature Smart contract deployment
Transaction Fee ~$0.0002 (XRP) $1-$50+ (gas varies)
Settlement Speed 3-5 seconds 12-15 seconds (varies)
Built-in DEX Yes (native order book + AMM) No (requires external DEX)
Issuer Controls Freeze, clawback (optional) Depends on contract code
Spam Protection Built-in via trustlines None (wallet must filter)

Creating an XRPL Issued Asset

step-by-step token issuance

Step Action Notes
1 Create issuer account Fund with 10+ XRP reserve
2 Configure account settings Set flags (freeze, require auth, etc.)
3 Create hot wallet (optional) Separate distribution account
4 Set trustline from hot to cold Enables token transfer
5 Issue tokens to hot wallet Tokens created via payment
6 Distribute to users Users must set trustlines first
7 List on DEX (optional) Create offers on native order book
Developer Note: XRPL token issuance requires no smart contract code—it’s a native ledger feature. This makes creation simpler but means customization happens through account settings rather than contract logic.

XRPL Issued Asset Checklist

Before Setting Trustline
☐ Research issuer reputation
☐ Verify issuer address
☐ Check freeze/clawback settings
☐ Understand asset purpose
☐ Confirm you have 2 XRP reserve
☐ Use official sources for addresses
Managing Assets
☐ Track trustlines in wallet
☐ Monitor issuer announcements
☐ Remove unused trustlines
☐ Check balances regularly
☐ Understand AMM opportunities
☐ Know how to trade on DEX
Security
☐ Use Xaman or trusted wallet
☐ Store XRP in hardware wallet
Tangem for mobile access
☐ Never share seed phrase
☐ Verify transactions before signing
☐ Watch for scam tokens
For Issuers
☐ Plan tokenomics carefully
☐ Document issuer address publicly
☐ Consider regulatory implications
☐ Set appropriate account flags
☐ Separate cold/hot wallets
☐ Maintain community trust
The Principle: XRPL’s issued asset system is powerful but requires understanding trustlines. Unlike Ethereum, you must explicitly consent to hold each asset. This is a feature, not a bug—it gives users control and prevents spam. Research issuers, verify addresses, and manage trustlines wisely.

 
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