Global debt has climbed past $250 trillion, equal to 235% of worldwide GDP, and U.S. liabilities are now growing by nearly $1 trillion every quarter.
With traditional fixes running out of steam, some in the crypto world are pushing alternative solutions.
Tokenizing Obligations
Versan Aljarrah of Black Swan Capitalist argues that mounting debt can’t simply be repaid — it must be restructured. His proposal: convert obligations into tokenized liquidity and tie them to neutral settlement assets like XRP, tokenized gold, and regulated stablecoins. This approach, he says, would modernize payments while giving creditors tradeable assets rather than stagnant claims.
Broader Tokenization Trend
The idea taps into a growing market. Real-world asset tokenization has surged more than 10% in the past month alone, hitting $22 billion in value, according to RWA.xyz. Countries such as El Salvador have already tested blockchain-based approaches to sovereign debt, though adoption remains experimental.
Optimism vs. Skepticism
Supporters see room for XRP to benefit if debt tokenization gains traction. Analyst EGRAG Crypto even forecasts a potential move to $15–$33 in the next bull cycle, citing historical breakout patterns. But regulators remain cautious — in the U.S., Bitcoin is still the only crypto even considered for reserve-like status.
For now, the idea of restructuring global debt on-chain is more vision than reality, though it reflects the growing search for alternatives as the burden of borrowing continues to mount.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/xrp-news-could-debt-tokenization-push-the-token-into-the-next-bull-cycle/