Ripple's XRP token cannot be pegged to gold due to its inherent protocol design and utility function. As a native token on the XRP Ledger (XRPL), XRP is primarily used for liquidity and settlement, contrasting with gold-backed tokens like PAX Gold or Tether Gold, which are issued with custodial claims. While XRP can serve as a bridge for these gold-backed tokens on the XRPL, it remains independent of physical gold, avoiding the counterparty and custody risks associated with being gold-backed. Projects such as Meld Gold are leveraging XRP for liquidity and transactional support in the development of gold-backed tokens on the XRPL.
XRP Unsuited for Gold Pegging, Facilitates Gold-Backed Tokens on XRPL
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