It is moving towards tokenizing the broader cryptocurrency ecosystem. Ripple CTO David Schwartz hinted at some key benefits of this technological advancement. Meanwhile, after the SEC’s approval of Ethereum ETF, XRP ETF discussions began. One strategist thinks an XRP ETF could be on the horizon and explains why.
Ripple CTO educates community on tokenization
cryptokoin.comAs you follow from , the concept of tokenization is floating around. But only a few understand or know what this really means. Joining Ripple Labs’ new X series explaining the Blockchain concept in 60 seconds, Ripple CTO used real estate to explain the concept of tokenization.
He said there is a lot of paperwork involved in purchasing an asset. Therefore, it has become quite difficult to prove ownership of such properties, he said. He emphasized that tokenization eliminates this challenge by solidifying the asset transfer and ownership process. Ripple CTO said that with distributed ledger technologies, it has become possible to record real estate sales, pay for properties and eliminate all fraud factors.
Schwartz explained how this ledger simplifies the process of borrowing money against an asset. With tokenization, one’s collateral can be recorded on-chain and the lender can easily verify ownership of the collateral. Depending on the underlying design of tokenization features, the lender may also obtain information that would indicate whether the individual has borrowed money from several lenders at the same time. Many financial giants are already testing tokenization features. Even BlackRock, one of the giant companies, is also participating in this trend. Protocols like Chainlink are particularly helpful in fueling this tokenization agenda with its CCIP solution, among others.
Ripple Labs’ position
Ripple Labs has not categorically stated its roadmap for its tokenization agenda. However, the firm has immediate plans to launch a stablecoin later this summer. In its latest move, Ripple Labs has filed a trademark application for the stablecoin. This application showed that it hoped to use the symbol “RLUSD”. The stablecoin ecosystem is growing. Therefore, Ripple is optimistic about entering the market in a dominant way.
Is XRP ETF ready for launch?
Tides in the crypto world change frequently. All eyes are now on the possibility of an XRP ETF, especially following the recent approval of spot Ethereum ETFs. Nick, a crypto strategist, points to a promising future for Ripple’s native token. In this context, the analyst outlines why an XRP ETF could be on the horizon, supported by various factors. Nick cites a number of compelling factors that could lead to an XRP ETF being approved and successful. Nick’s analysis, along with ongoing developments, paints an optimistic picture for the future of XRP.
The strategist’s analysis examines the potential launch of an XRP ETF and the key factors driving its prosperity. These include the trend of tokenizing real-world assets (RWA), Ripple’s anticipated initial public offering (IPO), the emergence of a Ripple-backed stablecoin, and regulatory clarity regarding institutional sales of XRP. Additionally, strategic partnerships, developments in the XRP Ledger (XRPL) and the increasing adoption of XRPL in various applications are strengthening XRP’s position.
When is XRP ETF possible?
Geoffrey Kendrick, an analyst at Standard Chartered, predicts potential approval of crypto ETFs by 2025. Among these cryptocurrencies, XRP and Solana stand out. Kendrick points to the recent approval of Ethereum ETFs by the SEC, suggesting that similar cryptocurrencies may not be classified as securities. The analyst notes bipartisan support in the political sphere for the crypto industry. Therefore, it indicates a favorable environment for regulatory advances. Kendrick expects the approval of ETH ETFs to bring heavy institutional capital into the space. He also predicts that it will likely benefit other coins like XRP.
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