In a recent statement, Ripple's Senior Vice President Markus Infanger shared his perspective on the future of asset tokenization, claiming that XRP Ledger represents the optimal infrastructure for the process.
From Immobilized Certificates to Digital Tokens
Infanger drew parallels between the current tokenization landscape and the transformation of capital markets in the 1970s. He stated that current tokenization methods based on Special Purpose Vehicles (SPVs) act as 'scaffolding' for true digital asset issuance. These structures are a necessary part of the existing infrastructure until standards and regulations are developed.
Technical Advantages of XRP Ledger Architecture
Infanger emphasized that the architecture of XRP Ledger is designed with financial applications in mind, reducing integration complexity and operational risks. The ledger features a built-in decentralized exchange enabling token trading without external smart contracts. Infanger pointed out that the consensus mechanisms of XRP provide rapid finality and minimal transaction costs, which is especially critical for high-volume financial instruments.
Institutional Adoption Strategy
Infanger advocates for a gradual approach to institutional adoption of tokenization. He believes that financial institutions can continue to use Special Purpose Vehicles while appropriate legal frameworks are developed for native issuance. This incremental approach allows them to gain operational experience with tokenized assets.
Infanger emphasizes that current tokenization methods are temporary bridges to fully digital financial instruments. He argues that XRP Ledger offers a more direct path to native digital asset issuance compared to general-purpose blockchain platforms.
