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Experts Explain How Ripple’s XRP Ledger Can Empower Institutions for RWA Tokenization

Ripple is actively promoting its XRP Ledger (XRPL) as the ideal blockchain for tokenizing real-world assets (RWA) on an institutional scale. The XRPL offers transaction speeds of 3 to 5 seconds at minimal cost, eliminating the high costs and delays associated with traditional financial systems. It also employs a strong governance mechanism that allows for amendments to meet the needs of financial institutions. The XRPL's Automated Market Maker (AMM) aggregates liquidity across the protocol, simplifying participation in decentralized finance (DeFi) for institutions. The upcoming launch of Ripple USD (RLUSD), a stablecoin pegged to the US dollar, will improve liquidity and cross-border transactions on the XRPL. The XRPL leverages Decentralized Identifiers (DID) to enhance security and compliance with Know Your Client (KYC) and Anti-Money Laundering (AML) standards. Despite some challenges, such as a decrease in on-chain activity, Ripple believes that increasing demand and understanding of tokenization will lead to rapid expansion in the market.

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