Tokenizing financial assets on public blockchains is gaining traction among traditional finance (TradFi) firms as they seek to address pain points in various value chains. According to Markus Infanger, Senior Vice President of RippleX, the use of blockchain in TradFi is becoming more tangible and is moving beyond the hype. Infanger highlighted that the potential future value of tokenized markets is estimated to be $16 trillion, eight times larger than the cryptocurrency sector’s total market cap. He added that discussions with financial institutions are underway to explore tokenization projects on the XRP Ledger, with some already having distribution plans in place. An example of this is the partnership between HSBC and Ripple-owned firm Metaco to allow institutional investors to hold tokenized securities. Ripple, known primarily as a payment solution provider, is expanding its offerings to cater to both TradFi and decentralized finance (DeFi) players. Infanger emphasized that Ripple now offers a combination of custody services, payment solutions, and contributions to the XRP Ledger, providing a holistic digital asset infrastructure for traditional finance and DeFi developers. Ripple’s plans to issue its own stablecoin on XRPL and Ethereum, alongside its existing offerings, will further complement its services for institutions. Infanger noted that the stablecoin market has the potential to reach $2.8 trillion in five years, given the substantial amount of off-chain assets worth $22 trillion. He mentioned that demand for a tier-one stablecoin offering similar to USD Coin or Tether has been a frequent request from developers in the XRPL ecosystem. While Ripple has previously experimented with stablecoins alongside XRP, the introduction of its stablecoin aims to serve institutional DeFi use cases, tokenization on XRPL, and provide optionality for its payments product. Ripple has not yet announced a launch date or the name of its XRPL and Ethereum-based stablecoin.
The Potential $16T Tokenized Asset Market on Public Blockchains
I don’t trust Ripple, especially after their legal troubles with the SEC. They are just trying to distract from that. 🙄
Ripple needs to focus on improving the security and decentralization of their network instead of chasing after every new trend.
Ripple’s plans sound ambitious, but I doubt they will be able to deliver on their promises.
Ripple’s efforts to provide a comprehensive digital asset infrastructure for traditional finance and DeFi players is a game-changer. They’re bridging the gap! 🤝🌈
Wow, the potential future value of tokenized markets is estimated to be $16 trillion! That’s mind-blowing!
The demand for stablecoin offerings in the XRPL ecosystem is proof of the growing interest in digital assets. Ripple is listening to the developers!
Ripple’s holistic digital asset infrastructure for traditional finance and DeFi developers is exactly what the industry needs! They’re paving the way for a new era.
Finally, a tier-one stablecoin offering similar to USD Coin or Tether! This is a game-changer!