This article discusses key trends in the tokenization market and XRP's role in these processes. Major growth forecasts for the industry are explored.
Market Forecasts for Tokenization
According to a report by Ripple and the Boston Consulting Group (BCG), the tokenized asset market is expected to reach $16 trillion by 2033, accounting for about 10% of the global GDP. Other estimates suggest total valuation could climb to $18.9 trillion over the same period.
Tokenization refers to converting ownership of traditional assets, such as real estate, stocks, bonds, or commodities, into digital tokens on a blockchain. Benefits include faster settlement times, 24/7 trading, reduced costs, and improved global accessibility.
Signals of Growing Industry Interest
The concept of tokenization is gaining traction among traditional financial institutions. Leading firms such as JPMorgan, Citi, BlackRock, and HSBC are piloting tokenized products. Notably, BlackRock has expanded its tokenized fund onto the Solana blockchain, while a consortium of major financial players, including MasterCard and Visa, recently concluded a distributed ledger-based settlement trial.
Ripple has also made tangible progress, announcing a partnership with Archax in November to launch a tokenized fund on the XRP Ledger.
Potential XRP Valuation Based on Market Share
If XRP were to claim 20% of the projected $18.9 trillion tokenization market, its market capitalization could reach approximately $3.78 trillion. The resulting price per XRP would depend on the token's circulating supply at that time.
Assuming all 99 billion XRP tokens are in circulation, each unit would be valued at around $37.80. However, if the circulating supply is lower—say, 70 billion tokens—the price could climb to $54. These figures represent significant increases compared to XRP’s current trading price of approximately $2.08.
XRP's participation in the tokenization economy presents a strong opportunity for long-term growth. As infrastructure matures and institutions deepen their involvement in digital assets, XRP could play a critical role in facilitating tokenized asset movements, particularly if Ripple's ecosystem expansion proves effective.
