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Tokenization growth to depend on use cases, benefits

Author: Content Editor
Ripple is discussing real-world asset tokenization with financial institutions, but mass migration from traditional finance to this space still requires more work. Trillions of dollars worth of assets being tokenized and the speed at which it occurs will largely depend on the perceived value of use cases that emerge. The tokenized real-world asset (RWA) segment is currently valued at around $12 billion, excluding stablecoins, which sit at approximately $170 billion. However, the benefits of tokenization, such as efficiency and increased investor access to assets, still need to be proven. The Financial Stability Board (FSB) suggests that traditional and blockchain systems will likely be blended, with tokenization being most beneficial for asset classes where the cost-benefit trade-off is clear. Ripple plans to launch a stablecoin called RLUSD, backed by US dollar deposits and other assets, and is working closely with regulators to make this happen. The company aims to collaborate with regulators and ensure compliance with the highest-quality standards.

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