Crypto News – With the race toward blockchain-based tokenization heating up, TradFi firms are becoming more receptive to the idea of tokenizing financial assets on public blockchains.
Breaking News in the Tokenized Asset Market: TradFi Firms Take Action
In an effort to deploy for production and alleviate pain points across several value chains, TradFi participants are at last moving financial assets on-chain, according to RippleX senior vice president Markus Infanger. According to Infanger, blockchain technology is finally being used by TradFi.
We’re starting a paradigm shift for blockchain technology, moving beyond the hype and into real utility. It’s starting to unfold,
Infanger
Eight times larger than the market capitalization of the whole cryptocurrency industry, the CEO stated that study estimates place the eventual worth of tokenized marketplaces at $16 trillion.
A couple of years ago, many of us in this space were envisioning that. It’s getting closer to reality, and it’s happening on public blockchains. At some point, it looked like it would only happen on JPMorgan Coin or IBM.
Infanger
Ripple in Discussions with Several Financial Institutions for Tokenization Issuance
Infanger stated that they are investigating tokenization projects to issue assets on the XRP Ledger and that advanced talks are now underway with several financial institutions. These companies can explain use cases and how they intend to use the underlying blockchain, and they already have distribution arranged.
An actual illustration of this came when HSBC and Metaco, a technology company owned by Ripple, partnered to enable institutional investors to hold tokenized assets on HSBC’s new custody platform starting in November 2023. Infanger continued, saying that by combining different XRPL-using products, Ripple’s business is growing more comprehensive.
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