- FortStock is using XRP Ledger’s Multi-Purpose Token (MPT) to convert warehouse receipts into collateral.
- The solution targets the $2.5–$5 trillion global trade finance shortfall.
- Test runs show MPTs can issue, transfer, and settle warehouse assets directly on-chain.
Ripple announced that FortStock is putting the XRP Ledger’s MPT standard into action to make warehouse inventory usable in financial markets.
The move comes as the global trade finance gap, estimated between $2.5 trillion and $5 trillion by the Asian Development Bank and the WTO, continues to block businesses from accessing credit.
Each year, over $25 trillion worth of goods move across borders and end up in warehouses. Yet much of this stock remains locked out of financial systems, with no way to be counted as collateral.
FortStock sees this as wasted potential and is developing a system where warehouse receipts function as digital financial assets. The aim is to give businesses, especially in emerging markets, a path to short-term funding using their existing inventory.
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XRP Ledger MPTs Bring Real-World Trade Finance On-Chain
Tokenization alone is not enough to solve this problem. FortStock required a framework that could replicate the rules and details of regulated assets in digital form. That is what the MPT standard on XRP Ledger delivers.
Unlike simple tokens that only represent ownership, MPTs allow legally relevant details such as receipt numbers, expiry dates, and document hashes to be embedded directly on-chain.
They can also handle the full lifecycle of an asset, from issuance to being pledged as collateral and finally to settlement, all without the need for outside smart contracts.
FortStock tested this idea by minting a sample MPT on the XRP Ledger Devnet. The receipt token was issued, transferred to another wallet to simulate collateralization, and then burned to complete the cycle.
These actions were live on-chain and open for verification, showing that the system can handle real trade finance processes.
MPT Receipts Unlock New Liquidity on XRPL
Turning receipts into MPTs means more than digitizing documents. It creates new sources of liquidity. Once tied to on-chain assets such as RLUSD, warehouse-backed tokens could allow businesses to borrow instantly against their goods rather than depending on credit history.
For lenders and investors, the model reduces risk by providing tokens tied to physical stock, complete with jurisdiction, commodity type, storage terms, and audit trails.
Yields in the range of 8–12% become accessible, supported by assets that exist in warehouses rather than speculative markets.
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