Ripple CTO David Schwartz has revealed that the XRP Ledger (XRPL) is moving towards real world asset (RWA) tokenization, a scene pursued by prominent firms such as JPMorgan and Bank of America (BoA).
Schwartz made these remarks while discussing the journey of the XRPL in a recent interview. He expressed his satisfaction with the fact that the technology behind the XRP Ledger is getting more attention these days, instead of an all-in obsession with XRP, its gas token.
The Ripple CTO emphasized that XRP remains a token that market participants can buy, hold and transfer. However, he stressed that the token itself is not as interesting as the core technology powering the XRP Ledger.
He further called attention to the XRPL’s unique nature at the early stage of blockchain adoption, noting that the network was the first layer-1 blockchain not built from the Bitcoin technology during the 2011/2012 period.
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“So it’s exciting to see more focus on the technology […] You’re right: institutional adoption of the XRP Ledger technology is growing,” David Schwartz declared.
According to him, part of the reason behind this growing interest and adoption is the heritage that the network was built around. He confirmed that the original architects, including him, built the XRPL for enterprise finance, applications and cross-border payments.
XRPL for RWA Tokenization
He noted that in the early days, he and the other architects were looking at ways to bolster enterprise adoption for solutions like Bitcoin. For such adoption to occur, they would need to establish bridges, connections and other pivotal technologies.
Schwartz then revealed that he is extremely excited about delving into real-world asset tokenization. He stressed that establishing efficient tokenization of real-world assets has grown to be a real problem. The XRPL is positioned to solve this problem.
In his words:
“Real-world asset tokenization is something that I’m pretty excited about right now, because that’s a real problem and there’s real interest from mainstream financial giants like JPMorgan and Bank of America, [which] are actively pursuing tokenization of traditional assets.”
Projected to hit $30 trillion by 2030, the tokenization industry has become a hot topic in the crypto scene, with projects such as Floki looking to jump on it. Antony Welfare, Ripple’s CBDC Advisor, revealed in July that Ripple aims to transform the real estate industry through tokenization.
In a previous interview, David Schwartz expressed his desire to see the XRPL serve as the go-to platform for tokenized real world assets. He noted that the XRPL boasts all the attractive features for this purpose, including low fees.