Ripple’s CTO Sets Timeline for Tokenized Real-World Assets on XRP Ledger

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The XRP Ledger (XRPL), a pioneering blockchain platform closely associated with the XRP cryptocurrency, is on the verge of ushering in a new era of tokenized real-world assets (RWA). Ripple’s Chief Technology Officer, David Schwartz, has unveiled a potential schedule for the introduction of RWA projects on the XRPL mainnet, highlighting the platform’s unique advantages. With its competitive transaction fees and seamless integration with on-chain exchange mechanisms, the XRPL is poised to offer a cost-effective and efficient solution for trading, storing, and transferring real-world assets, all without relying on traditional fiat currencies.

Schwartz Anticipates Tokenized Real-World Assets on XRPL by 2024-2025

In a recent video presentation shared by the Flip The Chain team on October 13, 2023, David Schwartz expressed strong optimism regarding the XRPL’s prospects in the realm of RWA tokenization. Schwartz estimated that RWA projects could potentially go live on the XRPL mainnet within the next year to year and a half.

Schwartz pointed out several factors that make the XRP Ledger an ideal choice for RWA tokenization. Key among these advantages is the XRPL’s low transaction fees, which present an economical option for tokenization protocols and participants in the market. Furthermore, the XRPL boasts seamless integration with on-chain exchange mechanisms, ensuring a frictionless experience for users dealing with real-world assets.

Eliminating Fiat Dependency

Emphasizing the significance of reducing reliance on traditional fiat currencies such as the U.S. dollar, Ripple’s CTO stressed the importance of allowing users to buy, sell, store, and transfer real-world assets through XRPL’s decentralized exchanges (DEXes).

Projected Timeline for RWA Projects

Given the favorable conditions, it is anticipated that the first viable RWA tokenization projects on the XRP Ledger could become operational as early as 2024 or in the early months of 2025. Enthusiastic members of the cryptocurrency community on Twitter have speculated that assets such as gold and real estate might be among the first to be represented virtually on the XRPL.

XRPL AMM Proposal and Community Support

Currently, the XRPL community eagerly awaits the decision of validators concerning the activation of the XLS-30d proposal, often referred to as “XRPL AMM.” If approved, this proposal would introduce seamless non-custodial exchange functionality to the XRP Ledger, potentially transforming it into a DeFi (Decentralized Finance) blockchain.

As of the latest update, only two validators—Ripple itself and katczynski.net—have expressed their support for the inclusion of the XRPL AMM proposal in the Ripple v1.12.0 release. The proposal requires the approval of 26 out of 33 votes to pass, yet it has secured only 3.03% of the necessary voting power.

Ongoing Evolution of XRPL

In addition to the XRPL AMM proposal, another significant amendment, known as “Clawback,” which is considered crucial for the XRPL to remain compliant with regulations, has garnered 15.5% support, with five “yays” from validators. These proposals underscore the continuous evolution of the XRP Ledger as it strives to accommodate the increasing demand for tokenized real-world assets within the blockchain ecosystem.

Author

Steven Walgenbach

Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations.

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