Investing.com | Editor Nikhilesh Pawar
Published November 18, 2023 at 11:16am ET
NEW YORK – Ripple Chief Technology Officer David Schwartz recently highlighted a strategic shift to leverage the burgeoning asset tokenization market using the company’s XRP Ledger (XRPL). In a move to challenge traditional financial institutions, Ripple has set its sights on the real estate sector, whose valuation is predicted to reach $30 trillion by 2030.
In today’s interview, Schwartz highlighted the strengths of XRPL over its native cryptocurrency XRP as a gas token. He hailed the ledger as an innovative layer-1 blockchain that has the potential to change the way enterprises deploy blockchain technology. This change of direction comes as Ripple seeks to expand on XRPL’s original design, which focused on facilitating cross-border payments without relying on Bitcoin’s technology lineage.
Schwartz highlighted XRPL’s ability to reshape the real estate industry through the process of tokenization. By representing physical assets such as real estate as digital tokens on a blockchain, tokenization provides a way to split ownership and potentially increase liquidity in traditionally illiquid markets. Masu.
Ripple aims to leverage XRPL’s low transaction fees and robust technology infrastructure to establish itself as the leading platform in asset tokenization. The initiative is expected to not only strengthen cross-border payments, but also expand corporate finance solutions and compete with financial giants exploring similar avenues.
Excitement about XRPL’s role in asset tokenization is not new within Ripple. Back in July, Ripple advisors discussed the potential to revolutionize the real estate industry through such initiatives. With this strategic direction, Ripple plans to support enterprise-level asset tokenization efforts, including projects like Floki that aim to leverage the capabilities of XRPL.
This development is an important step for Ripple as it looks to diversify its offering and enter new markets. The company’s focus on real-world applications of blockchain technology demonstrates its continued commitment to innovation and enterprise adoption.
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Written by: Investing.com