XRPL and Stellar: Why Two Networks, Not One
By Buck Vaughan
In the digital asset community, network choice is often treated as a tribal decision — you pick a side and defend it. In institutional finance, network choice is a functional decision — you use what works for the specific operation at hand.
We operate on both the XRP Ledger and the Stellar network. This is not hedging. It is engineering. Each network serves a distinct institutional function, and using both creates a more resilient and capable infrastructure than either one alone.
The XRP Ledger: Settlement Speed and Liquidity
The XRPL is our primary settlement rail. Its core advantages for institutional operations:
- 3-5 second transaction finality — the fastest settlement of any major network
- Built-in decentralized exchange (DEX) for on-ledger asset settlement
- Trust Line architecture for issuing and managing custom tokens
- Escrow functionality for time-locked and condition-locked settlements
- Transaction cost under $0.001 — eliminates fee friction entirely
- Operating continuously since 2012 with no major security incidents
- Regulatory clarity following the SEC v. Ripple federal court decision
We use XRPL for: primary stablecoin settlement (mogUSD), gold-backed token management (mogGOLD), real estate token issuance (mogRE), cross-asset DEX settlement, and escrow-based deal structuring.
The Stellar Network: Compliance and Fiat Anchoring
Stellar is our secondary settlement rail and our primary network for compliance-sensitive operations:
- Built-in compliance controls including authorization flags and clawback capability
- Stellar Ecosystem Proposals (SEPs) provide standardized fiat on/off ramp protocols
- Native USDC issuance through Circle's direct partnership
- Anchor framework for issuing fiat-referenced tokens with regulatory compliance
- Path payment allows atomic cross-asset settlement in a single transaction
- MoneyGram integration for global fiat conversion capability
- 5-7 second finality with minimal transaction fees
We use Stellar for: yield token operations (mogYIELD), USDC-native settlements, compliance-constrained transactions requiring authorization flags, fiat on/off ramp operations, and cross-border payment settlement.
Side-by-Side Comparison
| Capability | XRPL | Stellar |
|---|---|---|
| Finality | 3-5 seconds | 5-7 seconds |
| DEX (On-Ledger) | Native, built-in | Native, path payments |
| Custom Token Issuance | Trust Lines | Anchored Assets |
| Compliance Controls | Freeze + Auth | Auth + Clawback |
| Fiat On/Off Ramps | Limited | Extensive (SEP-24/31) |
| USDC Support | Via wrapped tokens | Native Circle issuance |
| Escrow | Native, time + condition | Via smart contracts |
| Operating Since | 2012 | 2014 |
| Consensus | Federated (UNL) | Federated (SCP) |
| Institutional Adoption | 300+ FIs via RippleNet | MoneyGram, Circle, Franklin Templeton |
Why Both
The question “which network is better?” is the wrong question. The right question is “which network is better for this specific operation?”
For raw settlement speed and on-ledger DEX access, XRPL wins. For compliance-controlled token issuance and fiat anchoring, Stellar wins. For institutional operations that span both requirements, you need both.
This is not a novel concept. Traditional financial institutions operate across multiple payment rails — SWIFT, Fedwire, ACH, CHIPS — each optimized for different transaction types. Our approach to digital settlement is the same: use the right tool for the right job.
The result is infrastructure that is faster than any single network, more compliant than any single framework, and more resilient than any single point of failure.