Ripple is best known for its XRP cryptocurrency and global payments network, but it is now setting its sights on the tokenized assets market. In its 2023 New Value report, the company believes blockchain technology can unlock trillions of dollars of value in the global financial system by tokenizing real-world assets like stocks, bonds, and real estate.
Ripple Wants To Get In On The Action
Tokenized digital representation of assets like stocks, bonds, real estate, art, and commodities provide more efficiency, liquidity, and accessibility on DeFi protocols. And Ripple has big plans for the tokenized assets 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 for tokenizing assets and facilitating blockchain-based trading.
Earlier this month, the company’s CBDC advisor, Anthony Welfare, posted on Twitter that Ripple’s CBDC team is focusing on real-world use cases for a CBDC or stablecoin on Ripple’s CBDC Platform. This will allow users to tokenize 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 selected to assist the HKMA in creating a tokenization solution that records e-HKD real estate transactions on a secure and private ledger using its CBDC Platform – a new private ledger distinct from the XRP Ledger.
Coincidentally, Ripple is not the only entity seeing growth in this niche of the industry. According to the Boston Consulting Group, tokenized illiquid assets can reach $16.1 trillion by 2030. Around 72% of finance decision-makers expect to explore tokenization as a way to drive innovation over the next three years. A survey of 300+ global institutional clients by Celent showed reported 97% of respondents agree that tokenization will revolutionize asset management and would be good for the industry.
XRP Standing Strong
Ripple has faced uncertainty in the past due to an ongoing legal battle with the SEC. Despite the unclear regulatory environment, Ripple continues expanding into new areas, like the tokenized assets sector.
Today, Ripple secured another win as United States District Judge Analisa Torres ruled in partial favor of Ripple, saying that XRP sales on public cryptocurrency exchanges were not offers of securities under the law.
However, the judge also remarked that Ripple Labs Inc. violated federal securities legislation in its sales of XRP directly to major investors, and a jury must decide the involvement of CEO Brad Garlinghouse and Chairman Chris Larsen.
Following the ruling, the price of XRP has surged over 60% to trade at $0.76 at the time of this writing.