Ripple to decentralize XRP Ledger funding: How it will empower independent developers and community initiatives to drive blockchain growth

Ripple, the $40 billion crypto payments company, is shifting how development funding for the XRP Ledger blockchain is managed, aiming to give independent organizations, community initiatives, and venture partners a bigger role.

Ripple Shifts XRP Ledger Funding to Independent Builders

The change, announced in a Thursday blog post, reflects Ripple’s intent to create a more distributed ecosystem that supports builders through multiple pathways rather than relying solely on Ripple-backed initiatives.

Ripple said, “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,” as quoted by DLNews.


The move also seeks to address concerns that Ripple exerts too much influence over the XRP Ledger, which, while separate from the company, has long been closely tied to it.

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Ripple’s Role as Largest XRP Holder and Developer

Ripple has historically been the largest XRP holder, controlling $57 billion of the cryptocurrency, around two-thirds of all tokens in circulation as of March 2025 and a major developer for the blockchain itself.

Ripple’s Aim: Supporting Startups with the FinTech Builder Programme

With new initiatives such as the FinTech Builder Programme, Ripple hopes to support startups building financial apps on the XRP Ledger, including stablecoin payments, tokenization, credit infrastructure, and regulated financial services, as per the DLNews report.

Non-Profits and Venture Partners Driving XRP Ledger Growth

The blockchain ecosystem is also seeing growth through other funding routes. The recently launched XAO DAO offers microgrant funding and aims to amplify community voices and experimentation. Non-profits like XRPL Commons and regional initiatives like XRP Asia continue to play active roles, while Ripple’s university partnerships and venture capital partners, including Dragonfly Capital, Pantera, and Franklin Templeton, will help sustain development.

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Challenges in XRP Ledger’s DeFi Ecosystem

Despite hosting an $84 billion token, the XRP Ledger has faced challenges in its DeFi ecosystem. Deposits to XRP Ledger protocols have fallen sharply, from $120 million in July to just $49 million, while key technical leadership changes, including CTO David Schwartz’s departure in October, have left gaps in development. Schwartz had been instrumental in creating XRP Ledger’s automated market maker and programmable tokens.

Upcoming Features: XRP Staking and Lending Market

Ripple is looking to turn this around with upcoming features like XRP staking and a new lending market. The lending infrastructure, which would allow financial institutions to borrow from retail investors, is currently under community voting, requiring an 80% supermajority of validators to pass. If approved, these updates could breathe new life into the XRP Ledger’s DeFi ecosystem and attract more developers to the platform, as per the DLNews report.

FAQs

What is Ripple changing about XRP Ledger funding?

Ripple is moving toward a more distributed funding model, letting independent organizations, community initiatives, and venture partners play a bigger role.

Why is Ripple making this change?

The goal is to create a healthier, more distributed ecosystem and reduce the perception that Ripple controls the XRP Ledger.