Ripple’s XRP Poised to Revolutionize the $16 Trillion Market, Aiming to Become Global Standard for Payments
- Ripple’s latest report highlights that finance leaders view payments as a critical gateway to crypto adoption and are interested in leveraging tokenization for innovation in various industries.
- The report also emphasizes the growing interest in decentralized finance (DeFi) among financial institutions, with 76% of finance leaders expressing interest in institutional DeFi for driving innovation in liquidity, risk management, and identity.
San Francisco-based blockchain startup Ripple has released its latest report dubbed “Crypto Trends in Business and Beyond,” which emphasizes the dominance of payments as well as the use case for digital assets. Interestingly, the report also projects that the tokenization market could grow further to $16 trillion by the end of this decade i.e. 2030.
This is the second such report in the series from Ripple that offers valuable insights into global sentiments while offering a broader perspective towards crypto, digital assets, and blockchain technology. Besides, it also talks in detail about tokenization, decentralized finance (DeFi), central bank digital currencies (CBDCs) and payments.
The report surveys 1,700 leaders from financial institutions and enterprises and specifically explains three major sections – Tokenize, Manage, and Move. One of the key findings of the report is that the top use case of digital assets is for payments. Thus, it goes to show that a majority of the individuals involved in the crypto space leverage digital assets for payments.
The survey conducted by Ripple shows that 44% of global finance leaders see payments as one of the most critical gateways to crypto adoption. Particularly, they also highlight faster payments as well as cost-effectiveness to be one of the significant value propositions for integrating cryptocurrencies into cross-border transactions.
Tokenization – A $16 Trillion Opportunity
The Ripple report predicts that as the crypto market continues to mature, tokenization of real-world assets will continue to grow further. As per the report from the Bostom Consultancy Group (BCG) last September 2022, the tokenization of illiquid assets will become a $16 trillion business opportunity by 2030.
The Ripple report shows that 72% of the respondents are willing to employ tokenization in their firm in order to drive innovation over the next three years and across multiple industries such as manufacturing, banking, media, and entertainment.
Finance leaders are optimistic about tokenization’s potential for securitized assets, such as mortgages and asset-backed securities. On the other hand, enterprises recognize opportunities in the metaverse and event ticketing. Ripple’s recent acquisition of Metaco further signifies its interest in the tokenization space.
Bullish on DeFi to Drive Innovation
Another important finding in the report is the growing interest in decentralized finance (DeFi) among financial institutions. Although DeFi is quite an emerging field at the moment, a staggering 76% of finance leaders showed interest in institutional DeFi for driving innovation in liquidity, risk management, and identity.
No spam, no lies, only insights. You can unsubscribe at any time.
Finance leaders are recognizing the significant benefits of decentralized finance (DeFi) in enhancing operational efficiency, data management, financial flexibility, and access to 24/7 markets.
However, along with enthusiasm, a comprehensive report acknowledges the challenges such as privacy, regulation, risk management, and price volatility. Ripple underscores the need to educate financial institutions, governments, and businesses about the transformative potential of cryptocurrency in advancing the Internet of Value.
Crypto News Flash does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. Crypto News Flash is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
