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Crypto: Ripple Revolutionizes Tokenization of Real Assets with XRP

Mon 20 Nov 2023 ▪ 3 min of reading ▪ by Luc Jose A.
Getting informed Blockchain

Ripple, the crypto platform behind XRP, is committed to the tokenization of multiple assets. Among them, fungible tokens, stablecoins, and Central Bank Digital Currencies (CBDC). As of the latest news, the XRP Ledger (XRPL), the decentralized public blockchain that Ripple uses for issuing XRP, has made progress. It is venturing into the tokenization of real assets, positioning Ripple as a key player in decentralized finance and the blockchain ecosystem.

Ripple

Strategic Evolution for Ripple’s XRP Ledger

This Saturday, November 18th, David Schwartz, the Chief Technology Officer at Ripple, revealed in an interview a significant strategic change for the XRP Ledger (XRPL), the blockchain created by Ripple that supports XRP, Ripple’s native asset.

The executive has announced that the XRPL is expanding with regards to the tokenization of assets. From now on, the blockchain will accommodate the tokenization of real-world assets, in addition to virtual assets such as stablecoins and CBDCs in particular.

This news resonates as a change in priority. At least, that is what can be inferred from Schwartz’s explanations during the interview. It suggests that there is now a focus on the expanded potential of the XRPL blockchain, despite the popularity of XRP.

The Ripple executive particularly praised the unique position of the XRPL as the first layer 1 blockchain independent of Bitcoin technology—a distinctive feature that has been maintained since its inception in the early 2010s.

XRPL, the Market Leader in the Tokenization of Real Assets?

Could the XRPL blockchain position itself and emerge as the leader in the tokenization of real assets? Nothing is less certain at the moment. But in any case, the ambition is certainly there.

Indeed, David Schwartz envisions the XRPL becoming the most important crypto platform dedicated to tokenizing real-world assets. This is due to its attractive features, including low transaction fees. However, it will have to break away from the competition.

Because with this development, the XRPL is entering into direct competition with behemoths of traditional finance. Specifically, JPMorgan and Bank of America, which are already very active in this area. This marks a notable advancement in the evolving ecosystem of blockchain.

In any case, the competition in this segment promises to be tough considering the potential represented by the asset tokenization market. According to estimates, it could be worth up to 30 trillion dollars by 2030. It’s easy to see why this crypto segment is booming, attracting considerable interest from the giants of finance.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.