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Ripple, best known for its XRP cryptocurrency and global payments network, is now setting its sights on the tokenized asset market. In its 2023 New Value report, the company believes that blockchain technology could unlock trillions of dollars of value in the global financial system by tokenizing real-world assets such as stocks, bonds and real estate.
Ripple wants to get in on the action
The tokenized digital representation of assets such as stocks, bonds, real estate, art, and commodities provides greater efficiency, liquidity, and access over DeFi protocols. And Ripple has big plans for the tokenized asset market.
The company believes that the tokenization of global illiquid assets could be a $16 trillion business opportunity by 2030. So to position itself, Ripple is building tools and services to tokenize assets and facilitate blockchain-based trading.
Earlier this month, the company’s CBDC advisor, Anthony Wellfare, Posted It was reported on Twitter that Ripple’s CBDC team is focusing on real-world use cases for CBDCs or stablecoins on Ripple’s CBDC platform. It will allow users to mark real estate as collateral for loans.
Recently, the Hong Kong Monetary Authority invited Ripple Labs to participate in a pilot initiative for the tokenization of real estate assets. According to the company, its CBDC platform was chosen to assist the HKMA in creating a tokenization solution that records e-HKD real estate transactions using its CBDC platform on a secure and private ledger – one separate from the XRP ledger. New Private Ledger.
Incidentally, Ripple is not the only entity seeing growth in this area of the industry. According to Boston Consulting Group, tokenized illiquid assets could reach $16.1 trillion by 2030. Nearly 72% of finance decision-makers expect to explore tokenization as a way to drive innovation in the next three years. A survey Celent reports that 97% of respondents from more than 300 global institutional clients agree that tokenization will revolutionize asset management and is good for the industry.
XRP is in a strong position
Ripple has faced uncertainty in the past due to its ongoing legal battle with the SEC. Despite the unclear regulatory environment, Ripple continues to expand into new areas such as the tokenized asset sector.
Today, Ripple scored another victory as United States District Judge Analisa Torres ruled in partial favor of Ripple, ruling that the sale of XRP on public cryptocurrency exchanges was not an offering of securities under the law.
However, the judge also noted that Ripple Labs Inc. violated federal securities law in selling XRP directly to major investors, and a jury will have to decide the involvement of CEO Brad Garlinghouse and Chairman Chris Larsen.
Following the decision, the price of XRP is up over 60% to trade at $0.76 at the time of this writing.
XRP price surges 60% to $0.76 | Source: XRPUSD on Tradingview.com
Featured Image from iCloud, Chart from Tradingview.com
