Beyond native XRP, the XRP supports issued tokens (historically called IOUs) with issuer accounts and trust lines defining counterparty risk.
Trust lines and issuers
Holding a token means trusting its issuer to honor redemption policies. Limit trust line amounts and research issuer disclosures before accepting tokens.
Tokenization use cases
Projects experiment with representing fiat-backed assets, stablecoins, or wrapped instruments on XRPL. Regulatory treatment varies by jurisdiction and asset type.
AMM and liquidity
Automated market maker features on XRPL pool assets for on- trading. Impermanent loss and pool composition risks apply—study parameters before depositing.
Summary
Tokens on XRPL are objects with issuer risk. Native XRP behaves differently from issued assets.