A heated debate within the XRP community regarding whether the Canton Network is poised to replace XRP in institutional finance, particularly in relation to the Depository Trust & Clearing Corporation (DTCC), has been addressed by analysts who argue the narrative is fundamentally flawed. The discussion gained traction following commentary from Apex Crypto Insights's Jesse, who sought to clarify the distinct purposes of each network.
The Canton Network, launched in 2023 by enterprise blockchain firm Digital Asset, is designed as a "network of networks" for regulated financial institutions. Its core function is the privacy-preserving tokenization of real-world assets (RWAs) like U.S. Treasuries, bonds, and securities. It emphasizes configurable privacy, atomic settlement (all-or-nothing transactions), institutional compliance, and subnetworks to limit data exposure. Its native token is primarily used for network fees, not as a bridge currency. Recent advancements highlighted by the network include the completion of a fourth set of on-chain repo transactions, marking the first cross-border intraday repo using tokenized Gilts.
XRP and the XRP Ledger (XRPL), in contrast, were explicitly built to solve a different problem: cross-border liquidity. Ripple's On-Demand Liquidity (ODL) service uses XRP as a neutral bridge asset to enable instant currency conversion—for example, from USD to pesos—without the need for pre-funded nostro accounts. This addresses the friction of dormant capital trapped in global corridors.
Analysts stress that the DTCC, which processes quadrillions in value annually, has different infrastructure needs. The argument that Canton's growing institutional footprint sidelines XRP misses the point that the two technologies serve complementary, not competing, roles. Canton provides the private, compliant rails for asset tokenization and atomic settlement within regulated ecosystems. XRP provides the deep, neutral liquidity required to move value efficiently between those ecosystems and across currencies and borders.
Jesse and other commentators frame the relationship as two distinct layers in the institutional crypto stack: Canton functions as the digital notary or verified vault for assets, while XRP functions as the armored transport for liquidity. A realistic deployment scenario could see institutions like the DTCC using Canton for managing tokenized regulated assets while utilizing XRP for cross-border settlement legs. The consensus is that the replacement narrative is incorrect, as the networks are solving different problems—Canton handles settlement logic and custody, while XRP provides liquidity provision.
