The XRP Ledger (XRPL) is currently in the spotlight as an ideal foundation for tokenizing real-world assets (RWAs). Ripple’s Chief Technology Officer, David Schwartz, listed the benefits of XRPL and outlined when to expect the first RWA projects to go live on the XRPL mainnet.
Clips from the interview where Schwartz discussed RWA tokenization were shared on X by Flip the Chain (@flipthechain), a team focused on real-world uses of blockchain technology.
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XRPL: The Future of RWA Tokenization
Schwartz began by stating that he hopes XRPL will be a place for RWAs to launch their tokenized forms with the rise of RWA tokenization projects. Schwartz then listed XRPL’s unparalleled qualities, including low transaction fees and seamless integration with on-chain exchange mechanisms, positioning it as the prime candidate for launching tokenization protocols for real-world assets.
According to Schwartz, people with real-world assets want to buy, hold, sell, transfer, and perform other transactions with these assets. He highlighted that everyone would perform these actions with the most convenient assets, and tying the tokenized RWAs to the U.S. dollar defeats the purpose of convenience.
🚨🚨🔥#Ripple #DavidSchwartz – "Tokenization on #XRPL shall start in year and half in real world" Hear the claps (Video in the thread)
What does that mean for #XRP?
1/2 pic.twitter.com/6X3MmPrQ1O— Flip The Chain (@flipthechain) October 13, 2023
Only people with easy access to the U.S. dollar can conveniently access them, and Schwartz explained that XRPL’s strengths lie in its ability to enable the buying, selling, storing, and transferring of assets without relying on traditional fiat currencies, such as the U.S. dollar. With XRPL’s decentralized exchanges (DEXes), all market participants could experience a new level of convenience.
Read Also: Ripple CTO David Schwartz: Higher XRP Prices Will Bring About Cheaper Payments
As for when RWA tokenization will begin on XRPL, Schwartz says, “I think we’ll see that in the next year or year and a half.” Flip the Chain also highlighted that the interview was three months old, which brings us closer to seeing RWA’s on XRPL.
Based on Schwartz’s statements, the XRPL ecosystem could witness the inception of the first viable RWA tokenization projects as early as 2024 or in the early months of 2025. Schwartz’s revelation was met with resounding applause from the live audience, as Flip the Chain stated.
One user pointed out that tokenizing all assets is a great idea and that gold should be the first. Flip the Chain responded that real estate would also be a good place to start. Another user said Schwartz’s timeline was still a long way off but added that “time flies.”
XRPL is poised to revolutionize the tokenization of real-world assets with its impressive features and capabilities. However, RWA tokenization isn’t the only place where Ripple is making innovations as the firm was recently shortlisted for the National Bank of Georgia’s CBDC project.
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