Ripple Labs Inc, the company associated with XRP, has boldly predicted the future of finance evolution.
In a recent post on X, Ripple predicted a staggering growth for the tokenized asset market.
The crypto company believes that in less than 10 years, the tokenized market will soar from a billion-dollar industry to tens of trillions.
Tokenization: Efficiency, Speed, and Interoperability Drive Adoption
Notably, Ripple expects the tokenized asset market to be worth over 30 times or 3,050% its current value, growing from about $600 Billion to $18.9 Trillion by 2033.
For clarity, the tokenized market refers to the digital representation of notable assets like stocks, real estate, arts, and more.
It involves transforming the aforementioned traditional assets into digital tokens.
These tokens get traded by investors and stored or transferred using blockchain technology.
Source: Ripple on X
This digitization is gradually gaining traction as adoption continues to soar and appears set to replace the current slow-paced financial system.
A major advantage of tokenization is its efficiency. The shift in the broader financial market signals a major reshaping of asset ownership.
Tokenization, for instance, reduces bond issuance costs by as much as 60%. It also fast-tracks the rate at which settlements are done.
With traditional assets, settlements could take between two to 10 days to take place. However, with tokenization, this could occur in minutes or even seconds.
This speed has become one of tokenization’s unique selling points. It has also served as a catalyst for adoption among financial institutions.
Ripple believes the sector will ride on this momentum to achieve the predicted $18.9 Trillion mark and beyond.
The crypto payments company believes that tokenization will become the model in the financial industry due to its visible efficiency gains, interoperability, and regulatory clarity.
Ripple’s Strategic Position with XRP and RLUSD
Governments and regulators have begun creating clearer rules around digital assets.
The regulatory clarity would fuel adoption by traditional institutions as they become more comfortable with the tokenized asset market space.
The market could witness explosive growth as soon as major banks and asset managers fully embrace RWA tokenization.
Additionally, asset tokenization facilitates real-time settlement and cross-border transfer quicker, cheaper, and transparently than traditional banking.
Institutions that act quickly to adopt tokenization, such as Ripple, could ride on the wave to profit from the incoming staggering growth.
With its XRP Ledger , Ripple is pivotal in leveraging the ecosystem and becoming a leader in the new financial era.
Institutional and Regulatory Momentum Builds
Given the closure of the Ripple vs. Securities Exchange Commission (SEC) legal battle, Ripple’s products are poised to capitalize on this niche in the crypto space.
XRP and RLUSD may play pivotal roles in the tokenization market shift.
XRP has served as a major cross-border payment system globally, and RLUSD offers stability in the volatile crypto world.
RLUSD recently hit a supply milestone, signaling its growing acceptance in the stablecoin market.
The platform would attract investors looking to tap into the sector without worrying about digital currency price volatility.
Meanwhile, beyond RLUSD, asset managers are pushing for its exchange-traded fund (ETF) to scale regulatory hurdles.
An SEC nod on the XRP ETF would further increase institutional adoption.
Ripple has positioned itself to take advantage of the tokenized asset market and potentially serve as a leader in the space.
