XRP: Cleanest Bet on Tokenization’s Growth Says Bitwise

The focus keyword XRP is gaining renewed attention as Bitwise CIO Matt Hougan named it one of the cleanest investment routes to tap into the rising phenomenon of real-world asset (RWA) tokenization. In his latest weekly CIO memo, Hougan emphasized the massive scale and future potential of tokenizing traditional financial assets on blockchain, positioning assets like XRP as a gateway into this shifting landscape.

RWA tokenization refers to the process of bringing conventional assets such as real estate, bonds, and stocks onto blockchain infrastructure through digital tokens. This enables greater liquidity, streamlined access, and enhanced transparency for investors. The sector has been steadily gaining traction among major financial players, and BlackRock’s CEO Larry Fink has also expressed strong enthusiasm for tokenization, predicting that virtually every type of financial asset could one day exist on-chain.

In Hougan’s perspective, tokenization isn’t just another crypto trend — it could revolutionize global finance. He cited the staggering size of this market, pointing out that stocks and bonds alone total around $257 trillion — a figure that vastly overshadows the estimated $2 trillion the U.S. Treasury Secretary says stablecoins could reach by 2030.

Recent developments signal that tokenization is no longer a theoretical concept but a practical reality. For example, Mercado Bitcoin, a leading Latin American crypto exchange, recently committed to tokenizing over $200 million in real-world financial assets on the XRP Ledger. These assets include fixed-income and equity instruments, a major move demonstrating XRPL’s evolving institutional utility.

In parallel advancements, tokenized stock trading platforms have been launched by Robinhood and Kraken, utilizing Ethereum’s Arbitrum and the Solana blockchain, respectively. Though these services are currently limited to non-U.S. clientele, Coinbase aims to change that. It recently petitioned the U.S. Securities and Exchange Commission for permission to let American users access tokenized equities.

The optimism around Coinbase’s request has grown after U.S. SEC Chair Paul Atkins called tokenization “a significant innovation” during a press appearance, showing potential alignment between regulatory authorities and blockchain developers to foster this sector in the U.S.

Given XRP Ledger’s rising prominence in tokenization, Hougan argues that direct investment in XRP could serve as a strategic way to tap into this maturing market. Hougan further proposed diversifying across Layer 1 blockchain assets and related infrastructure projects — naming Ethereum, XRP, Solana, and Chainlink as well-positioned players in the ongoing tokenization revolution.

Institutional projects continue to gravitate toward the versatile utility of the XRP Ledger. One notable case comes from the Middle East, where the Dubai Land Department selected XRPL as the technical foundation for its real estate tokenization initiative — a move set to modernize property investments within Dubai’s regulatory framework.

The numbers support Hougan’s investment thesis. A recent projection suggests that if XRP were to secure just 20% of an $18.9 trillion tokenized asset market by 2033, the token could potentially reach a value range of $37 to $54 — depending on circulating supply and market conditions.

Alongside Layer 1 tokens, Hougan also mentioned investing in crypto-related equities such as Coinbase, Circle, and Robinhood as complementary strategies to benefit from tokenization’s exponential trajectory.

Related: XRP Price: $12M Max Pain for Bears

As the push toward digital representation of real-world assets continues, XRP stands out as one of the most promising assets offering early exposure to this transformative shift in financial markets.