RippleX VP predicts public blockchains could witness a staggering $16 trillion surge in the tokenized asset market

Traditional finance (TradFi) companies are embracing the concept of tokenizing financial assets on public blockchains, as the competition for blockchain-based tokenization intensifies. According to Markus Infanger, the senior vice president of RippleX, TradFi players are now bringing financial assets onto the blockchain in order to solve pain points in different value chains. Infanger stated that this represents a shift from the hype surrounding blockchain technology to its practical implementation. He also mentioned that research suggests the future value of tokenized markets could reach $16 trillion, which is eight times larger than the current market capitalization of cryptocurrencies. Infanger revealed that Ripple is in advanced discussions with several financial institutions regarding tokenization projects on the XRP Ledger. He highlighted a recent example of HSBC partnering with Ripple-owned firm Metaco to enable institutional investors to hold tokenized securities on a new custody platform. Infanger emphasized that Ripple is expanding its appeal to both TradFi and decentralized finance (DeFi) players by offering a holistic digital asset infrastructure. In addition, Ripple’s plans to issue its own stablecoin pegged to the US dollar on the XRPL and Ethereum will complement its services for institutions. Infanger explained that the stablecoin market has the potential to reach $2.8 trillion in five years, considering the $22 trillion worth of off-chain assets. He also mentioned that there has been a growing demand for a tier-one stablecoin offering within the XRPL ecosystem. While Ripple has not yet confirmed the launch date or name of its stablecoin, it is clear that the company is actively working towards its development.