Crypto payments firm Ripple has announced plans to make funding for XRP Ledger development more decentralized. The company introduced a new FinTech Builder Programme to support startups and expand funding channels beyond its own initiatives. This move aims to foster a healthier ecosystem amid efforts to reduce perceptions of centralized control.
Ripple, a $40 billion company that uses the XRP cryptocurrency for cross-border payments, detailed its strategy in a blog post on Thursday. The firm seeks to shift funding for the XRP Ledger blockchain toward a more distributed model, involving independent organizations, venture partners, and community-led efforts. "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 stated.
Historically, much of the XRP Ledger's development funding has come through Ripple-supported channels. Launched in 2012, the ledger has close ties to Ripple, with many of its creators founding or joining the company. As of March 2025, Ripple holds about two-thirds of all XRP tokens in circulation, valued at $57 billion. The company remains a primary developer for the ledger.
To diversify support, Ripple will launch the FinTech Builder Programme, targeting startups creating applications on the XRP Ledger for areas like stablecoin payments, credit infrastructure, tokenization, and regulated financial services. In June, the XRP Ledger established the XAO DAO, a decentralized autonomous organization focused on amplifying community input and providing microgrants for experimentation. Ongoing efforts include the XRPL Commons nonprofit, XRP Asia for regional developers, university partnerships, and investments from venture firms such as Dragonfly Capital, Pantera, and Franklin Templeton.
"The goal is to ensure that no single organisation becomes the sole gatekeeper for ecosystem support," Ripple emphasized. Despite these steps, the XRP Ledger's decentralized finance (DeFi) sector faces challenges, with protocol deposits dropping from $120 million in July to $49 million. In October, chief technical officer David Schwartz departed after 14 years, during which he contributed to key updates like the native automated market maker and programmable tokens.
Looking ahead, developers are exploring XRP staking to enhance DeFi activity. Ripple is also developing a lending market infrastructure, with voting on the proposal beginning January 28. Approval requires an 80% supermajority from XRP Ledger validators.