The potential growth of the tokenization market is gaining attention following a joint report from Ripple and Boston Consulting Group (BCG), projecting that tokenized real-world assets (RWAs) could reach a valuation of $18.9 trillion by 2033.
This forecast has fueled speculation about XRP’s role in the evolving financial landscape, especially if the cryptocurrency captures a fraction of this emerging market.
Projected Growth in Tokenized Assets
Tokenization refers to digitally representing real-world assets on a blockchain or distributed ledger, making them more accessible and efficient to manage. The report from Ripple and BCG outlines a pathway for tokenization to become a significant part of the global financial ecosystem.
It highlights that the market, currently estimated at around $600 billion, could undergo substantial expansion over the next decade.
According to the report, assets tokenization is expected to begin with relatively straightforward instruments, such as bonds, before progressing into more complex and traditionally illiquid asset classes like real estate. Eventually, tokenization could become embedded in both financial and non-financial sectors.
Institutional Momentum and Ripple’s Strategic Moves
Institutional engagement is already becoming a major driver of tokenization’s adoption. Major financial players like BlackRock, JPMorgan, and Fidelity have made moves in this direction, demonstrating growing confidence in the tokenization market.
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Ripple, in turn, is positioning itself to become a leading facilitator in this market. The company has emphasized the importance of transitioning from experimentation to actual deployment of tokenized products.
A key part of Ripple’s preparation was its acquisition of Metaco in 2023, which helped advance its custody and tokenization services. According to Ripple’s Chief Technology Officer, David Schwartz, the XRP Ledger (XRPL) is particularly well-suited to support this evolution. The digital assets’ features make it an attractive platform for institutions looking to tokenize assets at scale.
Schwartz has continually championed tokenization, highlighting its numerous advantages for XRP, and Ripple could soon become the top player in this emerging market.
How High Can XRP Climb?
If XRP were to secure even a 10% share of the projected tokenization market by 2033, the implications for its price could be substantial. A 10% share of an $18.9 trillion market would equate to a $1.89 trillion valuation for XRP. With its maximum supply of 100 billion tokens, the asset could climb to $18.90.
However, if the supply remains close to its current circulating level of about 58.27 billion tokens, the asset could reach $32.40. The digital asset is currently trading at $1.83, and these lofty targets show XRP’s potential.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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