Ripple’s Strategic Move to Capture the $16 Trillion Tokenization Industry
Ripple, a leading crypto firm, has revealed its plan to tap into the projected $16 trillion tokenization industry by onboarding several institutions onto the XRP Ledger (XRPL). The company’s primary focus is on providing a secure environment for these institutions, mirroring the rigor of the banks it serves. By combining Hardware Security Modules (HSM) with FIPS-certified hardware, Ripple delivers security that scales, protecting assets without sacrificing operational speed.
The crypto firm emphasizes the importance of legitimate integration with the global financial system, which requires verification. To achieve this, Ripple adheres to SOC 2 Type II and ISO 27001 standards, ensuring that the infrastructure of institutions tokenizing on the XRP Ledger is compliant with necessary regulations. This commitment to security and compliance is a key factor in Ripple’s ability to capture a significant share of the tokenization industry.
Security: The Foundation of Institutional Trust
Akshay Wattal, Ripple’s Head of Information Security, notes that in the crypto space, security is not a feature, but the foundation of institutional trust. Effective custody, according to Wattal, requires in-depth architecture, battle-tested cryptography, and the governance rigor of a global financial institution. Ripple’s custody solutions, which are already being used by global banks such as BBVA, SG Fogre, DBS Bank, and DZ Bank, are designed to provide the highest level of security and compliance.
While these banks have not yet tokenized on the XRP Ledger, Ripple is actively working to onboard them onto the network. One proposal is the introduction of Confidential Multi-Purpose Tokens (MPTs) on the XRP Ledger, which would provide privacy for these institutions. Additionally, the company’s developer, Ayo Akinyele, has proposed native XRP staking on the network, which could incentivize institutions to build on XRPL and earn yields while doing so.
Progress in Other Areas of Operations
Ripple is also making significant progress in other areas of its operations, which drives value to the XRP Ledger. The company recently announced a partnership with fintech company RedotPay, which has integrated Ripple Payments to launch a crypto conversion feature for Nigerian users. This development provides a huge boost for XRP, which will be one of the supported assets on RedotPay’s “Send Crypto, Receive NGN” feature. Ripple has also revealed plans to support its RLSUD stablecoin in the future.
Furthermore, the Monetary Authority of Singapore has approved an expanded scope of payment activities for Ripple, enabling the company to broaden the range of regulated payment services it offers in the country. This approval is a significant win for Ripple and demonstrates the company’s commitment to compliance and regulatory adherence.
XRP trading at $2.18 on the 1D chart | Source: XRPUSDT on Tradingview.com
Featured image from Peakpx, chart from Tradingview.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
