The conventional finance sector (TradFi) is adopting the tokenization of financial assets on public blockchains, with notable progress in blockchain-based tokenization, as per Markus Infanger, Senior Vice President at RippleX.

During Paris Blockchain Week, in an exclusive interview with Cointelegraph, Infanger conveyed that the integration of blockchain technology in TradFi is gaining traction and making a tangible impact.

Infanger emphasized a pivotal shift for blockchain technology, transitioning from mere hype to practical utility.

He remarked, “We are witnessing the unfolding of this shift,” signaling a substantial movement towards implementing blockchain in traditional finance.

The potential of tokenized markets is vast, with future valuations projected to reach $16 trillion, surpassing the current cryptocurrency market cap significantly.

Infanger highlighted the ongoing evolution towards tokenization on public blockchains, diverging from initial expectations that it would be confined to specific technologies such as JPMorgan Coin or IBM.

TradFi institutions are actively involved in tokenization initiatives utilizing the XRP Ledger.

These entities have established distribution channels and defined use cases for leveraging blockchain technology effectively.

For instance, HSBC collaborated with Ripple-owned tech company Metaco to enable institutional investors to hold tokenized securities on a new custody platform introduced in November 2023.

Infanger also mentioned that Ripple is broadening its role in the financial landscape by integrating diverse blockchain solutions that enhance the functionality of the XRP Ledger (XRPL).

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While traditionally known for its focus on payments, Ripple is now attracting interest from both TradFi and decentralized finance (DeFi) sectors.

Describing Ripple’s expanded focus, Infanger stated, “We encompass a custody arm, a payments arm, and our contributions to the XRP Ledger, providing a comprehensive digital asset infrastructure proposition for traditional finance and developers addressing DeFi challenges.”

In addition to its existing offerings, Ripple intends to introduce its own stablecoin pegged to the United States dollar on both XRPL and Ethereum, aiming to complement its institutional services.

Although specific details are pending, Ripple CTO David Schwartz has previously discussed certain aspects of the stablecoin with Cointelegraph.

Infanger shed light on the rationale behind Ripple’s stablecoin, underscoring the growth potential of the stablecoin market, which could surge to \(2.8 trillion in five years—an exponential rise from the current \)130 billion.

He highlighted the persistent demand within the XRPL community for a top-tier stablecoin like USD Coin or Tether.

Concluding, Infanger outlined Ripple’s strategic vision of incorporating tokenization and stablecoin applications within its platform to cater to institutional DeFi use cases, tokenization on XRPL, and payment solutions alongside XRP.

Ripple is yet to confirm the launch date or the official name of its forthcoming stablecoin.

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