RippleX VP predicts public blockchains may witness a staggering $16T surge in the tokenized asset market

Traditional finance firms, known as TradFi, are increasingly embracing the concept of tokenizing financial assets on public blockchains. This shift comes as the race towards blockchain-based tokenization gains momentum. Markus Infanger, Senior Vice President of RippleX, stated that TradFi players are now looking to deploy blockchain technology for production purposes and address pain points in various value chains. In an exclusive interview with Cointelegraph during Paris Blockchain Week, Infanger expressed his belief that the use of blockchain in TradFi is becoming more tangible and marks a paradigm shift for the technology. He stated, “We’re starting a paradigm shift for blockchain technology, moving beyond the hype and into real utility. It’s starting to unfold.” Infanger also highlighted the potential future value of tokenized markets, estimating it to be $16 trillion, which is eight times larger than the total market capitalization of the entire cryptocurrency sector.
Infanger revealed that Ripple has been engaged in advanced discussions with several financial institutions, exploring tokenization projects to issue assets on the XRP Ledger. These firms already have distribution plans in place and can articulate their use cases and how they intend to utilize the underlying blockchain. An example of this collaboration is the partnership between HSBC and Ripple-owned technology firm Metaco, which enables institutional investors to hold tokenized securities on HSBC’s new custody platform.
Infanger emphasized that Ripple is expanding its business beyond being solely a payments-focused company. While Ripple is widely recognized for its blockchain-based payment solution, recent developments have broadened its appeal to both TradFi and decentralized finance (DeFi) players. Infanger explained, “We have a custody arm, a payments arm, and our contributions to the XRP Ledger. The combination is a holistic digital asset infrastructure value proposition for traditional finance and developers who want to solve DeFi problems.”
In addition to its existing offerings, Ripple recently announced plans to launch its own stablecoin pegged to the United States dollar on both the XRP Ledger and Ethereum. Infanger highlighted the growing demand for stablecoins, stating that the stablecoin market could reach $2.8 trillion in the next five years. Ripple aims to meet this demand and provide a tier-one stablecoin offering for developers in the XRPL ecosystem. Infanger stated, “Right now, we’re at $130 billion, so there’s clear demand, and there’s an expected trajectory of enormous growth. We’re really still at the early days.” Ripple has not yet disclosed the launch date or the name of its stablecoin on the XRPL and Ethereum-based platforms.