Ripple is best known for its XRP cryptocurrency and global payments network, but now it is setting its sights on the token asset market. In its 2023 New Value Report, the company believes that blockchain technology can 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
A tokenized digital representation of assets such as stocks, bonds, real estate, art, and commodities provides greater efficiency, liquidity, and accessibility on DeFi protocols. Ripple has big plans for the tokenized asset market.
The company believes that turning illiquid global assets into tokens could be a $16 trillion business opportunity by 2030. So, in order to position itself, Ripple is building tools and services to tokenize assets and facilitate blockchain-based trading.
Earlier this month, CBDC advisor Anthony Welfare, to publish On Twitter that Ripple’s CBDC team is focused on real-world use cases for a CBDC or stablecoin on Ripple’s CBDC platform. This will allow users to mark up real estate as collateral for loans.
Recently, the Hong Kong Monetary Authority invited Ripple Labs to participate in a pilot initiative to tokenize real estate assets. According to the company, its CBDC platform was chosen to help HKMA create a token solution that records real estate e-HKD 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 area of the industry. According to the Boston Consulting Group, token illiquid assets could reach $16.1 trillion by 2030. About 72% of financial decision makers expect to explore tokenization as a way to drive innovation within the next three years. a reconnaissance Of over 300 global institutional clients Celent showed that 97% of respondents agree that the token will revolutionize asset management and be beneficial to the industry.
XRP is standing strong
Ripple has faced uncertainty in the past due to an ongoing legal battle with the Securities and Exchange Commission. Despite the uncertain regulatory environment, Ripple continues to expand into new areas, such as the token asset sector.
Today, Ripple scored another win as US District Judge Analisa Torres ruled in part in favor of Ripple, saying that XRP sales on public cryptocurrency exchanges were not offerings of securities under the law.
However, the judge also noted that Ripple Labs Inc. It violated federal securities legislation in its sales of XRP directly to large investors, and the jury must decide the involvement of CEO Brad Garlinghouse and Chairman Chris Larsen.
Following the decision, XRP price is up more than 60% to trade at $0.76 at the time of writing.
XRP price surges 60% to $0.76 | Source: XRPUSD on Tradingview.com
Featured image from iCloud, chart from Tradingview.com