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The CEO of Ripple’s major partner in Japan, financial behemoth SBI Group, Yoshitaka Kitao, has published a tweet, endorsing Ripple’s new press release about the rapid expansion of the market for tokenized financial assets.
Over the next eight years, Ripple expects this space to spike to almost $19 trillion in volume.
Alex DovbnyaRipple's vision of future RWA tokenization
Ripple giant seems to have enormous plans for the market of real-world asset tokenization, as it expects it to boost from the current market value to $6 trillion this year and soar much higher over the next eight years. By 2033, this market is expected to hit a mind-boggling $19 trillion, which constitutes 53% growth.
This massive expansion is to be fueled by several factors, which include the expanding institutional adoption of tokenization, investor demand for it, regulatory advancements and so on. Besides, a lot of financial players are now treating tokenization as much more than an experiment. For them, now, this is a revolutionary development for reaching their strategic goals in providing a new type of financial services.
Real-world asset (RWA) tokenization is the conversion of ownership rights into digital tokens on a blockchain. Those tokens can represent not only financial assets but also fine art, collectibles, jewelry, and also financial tools — real estate, securities, funds, etc. In this form, these assets would be trading 24/7 every single day in a year, unlike the same assets on traditional markets. Thus, blockchain here serves as a bridge between traditional financial markets and decentralized ones (DeFi). XRP Ledger already provides services on asset tokenization, offering low-risk adoption and expansion to financial institutions that use XRPL for tokenizing RWAs.
Yuri MolchanRLUSD use case in asset tokenization
Ripple has also presented an important use case for its own product on the rapidly growing RWA tokenization market, except for the XRPL being a platform for tokenization already, with its recently launched RLUSD stablecoin.
It can be used for liquidity management and instant FX transactions. RLUSD was created with the goal of enabling almost instant transnational settlement. This would potentially ensure that enterprises that use it can move their finances in a much freer and faster manner, while still being able to fully audit and control them.
On April 9, Ripple minted an additional 350,026 RLUSD batch after mining 117,000 in early April.
Vladislav Sopov
Dan Burgin