Potential for RWA
Speaking at the Web3 conference, Schwartz, CTO of Ripple, said that the latest trend in the hot topic of tokenizing real world assets (RWAs) has huge potential.
Citing RWA-related reports from the Boston Consulting Group, he said that RWA-related inflation is being developed, and that XRPL is an excellent technology developed for tokenization.
Regarding the favorable ruling in the SEC case, he said, “It is an important milestone for Ripple and all of U.S. cryptocurrencies.
Governments, asset managers, real estate companies, and others are increasingly interested in the Real Asset Tokenization (RWA) market, which digitizes traditional assets and makes them tradable on the blockchain. By tokenizing real estate, gold, government bonds, currencies, etc., investors around the world will be able to trade these tokens 24 hours a day, 365 days a year.
According to the Boston Consulting Group, by 2030, the real asset tokenization market could reach trillions of dollars. In particular, it is said that composability in DeFi yield management can be an important interface between traditional finance and Web3 finance, and the tokenization of government bonds is an important use case for financial institutions.
In addition, the development of the real estate tokenization market is progressing steadily. In fact, Ripple is participating in the Hong Kong Monetary Authority (HKMA)’s e-HKD pilot program. The company leverages its CBDC platform and a private version of the XRP Ledger (XRPL) to provide real estate asset tokenization capabilities. This will enable the issuance and distribution of e-HKD and real estate tokens, as well as lending functions.
For Hong Kong residents, this is a new way to manage their assets faster and more efficiently. Banks, on the other hand, could benefit from faster loan turnover and more payment options.
connection:Ripple Participates in Hong Kong’s CBDC Pilot Program and Pursues the Potential of Tokenizing Real Estate Assets
Ripple CTO David Schwartz is one of the original architects of the open-source distributed ledger network XRPLedger. He is also popularly known as “JoelKatz” and has a huge following within the cryptocurrency community.
The digital token XRP is the native currency of XRPLedger, and various use cases are being built around the world, including the bridge currency in the remittance platform “ODL” provided by Ripple.
Prior to joining Ripple, Schwartz was the CTO of a Santa Clara-based software development company called WebMaster Incorporated. He has developed encrypted cloud storage and enterprise messaging systems for major organizations such as CNN and the National Security Agency (NSA).
connection:Summary of the “Ripple Trial” filed by the US SEC (December 2020-July 23)