Trillions Could Flow into XRP with XRPL Capturing 1% of $1.4 Quadrillion from Tokenization Market

XRP community members are brimming with optimism amid disclosures about the XRP Ledger’s potential to handle multi-trillions of dollars from the real-world asset (RWA) tokenization market.

XRPL Leading Tokenization Market

Recently, the Good Morning Crypto podcast host resurfaced the remarks of Ripple’s CTO David Schwartz on XRPL’s potential within the RWA tokenization market during the Apex 2023 developer summit.

Schwartz underscored several pivotal factors that render XRPL an appealing platform for real-world asset tokenization.

In particular, he emphasized that XRPL’s low fees and integration with decentralized exchanges (DEX) position it as the ideal platform for launching tokenized real-world assets.

Moreover, Schwartz forecasted that the XRPL would emerge as the preferred platform for launching tokenized assets within the next 18 months.

Interestingly, the shortness of the timeline, which the Ripple CTO hinted at, ignited enthusiasm within the XRP Army. Taking to X, the Good Morning Crypto podcaster remarked:

“Tokenization is about to revolutionize the XRP ledger, and Ripple’s CTO, David Schwartz, unveils the timeline: 12-18 months. Are you bullish on XRPL Tokenization?”

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Besides, pro-XRP attorney Bill Morgan weighed in, pointing out Schwartz’s emphasis on the significance of low fees and XRPL DEX integration.

He then posed a rhetorical question about the number of layer one blockchains that feature an in-built DEX and low fees.

He makes the point that low fees and integration with the XRPL’s DEX make the XRPL attractive for tokenization of real world assets. Remind me, how many layer 1 blockchains have an in-built DEX and low fees? https://t.co/5DZMfwfRjt

— bill morgan (@Belisarius2020) February 5, 2024

XRPL Processing $50 Trillion

Significantly, these discussions built upon earlier remarks from Graham Rodford, the CEO of U.K. exchange Archax. In particular, he forecasted that XRPL could process up to $50 trillion by 2025 within the context of RWA tokenization.

Rodford argued that the total RWA market across all asset classes is estimated at 1.4 quadrillion. He highlighted the growing trend of assets transitioning onto blockchain technology, as well as the rising interest in tokenized market funds and treasuries, particularly in the context of replacing traditional cash.

Given the enormity of the market, Rodford suggested that tens of trillions could flow through XRPL. He noted that this amount would only represent a slice of the overall market.

Trillions Flowing into XRP

Building on this premise, the Good Morning Crypto podcaster argued that with a market valued at $1.4 quadrillion, even a 1% capture would equate to trillions flowing into XRP.

Notably, 1% of $1.4 quadrillion amounts to $14 trillion. It is essential to acknowledge that the overall crypto market cap is approximately $1.65 trillion. Thus, a future where XRP commands trillions of dollars remains to be seen.