XRP Network RWA Tokenization Signals Millions

What to Know:

• Robinhood noted in a recent SEC filing that Ripple has tokenized hundreds of millions of dollars in real-world assets on the XRP Ledger.
• The filing highlights the growing trend of tokenization and its potential benefits, while also acknowledging regulatory hurdles in the U.S.
• This recognition by a major trading platform reinforces XRP’s position in the institutional tokenization landscape.

A recent filing by Robinhood Markets with the SEC has brought renewed attention to Ripple’s activity in the real-world asset (RWA) tokenization space. The seven-page memo, dated January 2025, highlights the benefits of tokenization while also addressing the regulatory challenges in the U.S. It also specifically mentions that Ripple has tokenized hundreds of millions of dollars’ worth of assets on the XRP Ledger (XRPL).

Ripple and XRPL in Tokenization Spotlight

The Robinhood memo defines tokenization as the process of representing real-world assets on a blockchain. According to WrathofKahneman (WOK), Robinhood listed several categories of tokenized assets, including stablecoins, tokenized securities, tokenized real estate, and non-fungible tokens. The memo specifically points to Ripple as a significant player in this emerging market, noting the company’s success in tokenizing hundreds of millions of dollars of RWAs on the XRPL through partnerships with firms like Ctrl Alt, Ondo Finance, and Securitize.

January Robinhood tokenization memo notes #Ripple has tokenized “hundreds of millions of dollars of RWAs on the #XRP Ledger (XRPL).” pic.twitter.com/yaffFs8JzX

Robinhood’s memo places Ripple alongside other major financial institutions like BlackRock and Goldman Sachs, who are also exploring tokenization initiatives. BlackRock, for example, launched its BUIDL Fund in March 2024 to tokenize U.S. Treasuries, while Goldman Sachs has been focusing on real estate and money market funds. The memo also references a McKinsey & Company estimate that tokenized funds could reach $2 trillion by 2030, excluding cryptocurrencies and stablecoins.

XRPL’s Growing RWA Market Share

Data from RWA.xyz indicates that the XRPL currently holds $1.8 billion in tokenized real-world assets, excluding stablecoins. This figure positions the XRPL as the sixth-largest blockchain by RWA value. Over the past 30 days, the XRPL has experienced a 159% increase in real-world asset value, outpacing other leading chains like Solana (46%) and Ethereum (15.49%). When stablecoins are included, the total value of real-world assets on the XRPL rises to $2.18 billion.

Composition of Tokenized Assets on XRPL

A closer look at the composition of tokenized assets on the XRPL reveals that commodities represent the largest share, accounting for $1.1 billion. Private credit contributes $322.7 million, while U.S. Treasury debt adds $180.6 million. Stablecoins make up $424 million of the total, with RLUSD alone accounting for $348 million of that amount. The JMWH commodity product on Justoken represents a significant portion of the total value.

Benefits of Tokenization

Robinhood’s memo outlines several potential benefits of tokenization, including increased liquidity, reduced costs through smart contracts, and enhanced transparency through blockchain records. Tokenization also enables fractional ownership, allowing retail investors to access high-value assets. Furthermore, blockchain systems support global access and 24/7 trading, potentially broadening financial access for underserved populations. These factors could contribute to greater market efficiency and inclusivity over time.

Regulatory Landscape in the U.S.

The Robinhood memo also addresses the regulatory challenges surrounding tokenization in the U.S. The company argues that current securities laws may hinder innovation by requiring most tokenized real-world assets to comply with traditional compliance frameworks. Robinhood also notes the lack of a clear regulatory structure for blockchain-native issuance and trading outside of existing securities categories. In contrast, other regions, such as the European Union with its MiCA regulation, Hong Kong, Singapore, and Abu Dhabi, have adopted more blockchain-friendly policies.

The acknowledgment by Robinhood that Ripple has tokenized hundreds of millions of dollars of real-world assets on the XRP Ledger is a noteworthy development for institutional investors. While regulatory uncertainty remains a challenge in the U.S., the growing interest in tokenization from major financial players suggests that this trend has staying power. The XRPL’s increasing market share in the RWA space could position it as a key platform for institutional adoption as the regulatory landscape evolves.

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Source: Original article