RippleX XRP/USD Senior Vice President, Markus Infanger, predicts that the tokenized asset market could surge to an impressive $16 trillion as traditional finance firms are increasingly adopting blockchain technology.
What Happened: Traditional finance firms are swiftly embracing the idea of tokenizing financial assets on public blockchains. Markus Infanger, RippleX’s senior vice president, disclosed that these firms are now bringing financial assets on-chain to address various issues in value chains.
At the Paris Blockchain Week, Infanger stated that the application of blockchain in traditional finance is becoming more tangible, as reported by CoinTelegraph. He also projected the future value of tokenized markets at $16 trillion, a figure eight times larger than the total market capitalization of the entire cryptocurrency sector ($2.5 trillion).
Infanger further revealed that Ripple is in advanced talks with various financial institutions about tokenization projects to issue assets on the XRP Ledger. He pointed out the example of HSBC partnering with Ripple-owned technology firm Metaco in November 2023 to allow institutional investors to hold tokenized securities on its new custody platform.
RippleX is an extension of Ripple and represents Ripple's initiative to create an open developer platform for money. It supports the core technologies that power Ripple's solutions for businesses.
Also Read: Ripple Announces Stablecoin On XRP Ledger And Ethereum
Why It Matters: Ripple’s business model is evolving to become more comprehensive, merging various solutions that utilize the XRP Ledger (XRPL). The company’s recently announced plans to issue its own U.S. dollar-pegged stablecoin on XRPL and Ethereum will further enhance its offerings to institutions.
Infanger also emphasized the growth potential of the stablecoin market, which he believes could reach $2.8 trillion in five years, from a current valuation of $130 billion. However, Ripple has not yet confirmed a launch date for its stablecoin.
What's Next: These topics are expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: Can Dogecoin Flip Ripple? Here’s What It Would Take
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
