Monica Long, President of Ripple
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2Labs Inc., has called on banks and financial institutions to adopt digital transformation in light of the increasing trend of tokenization worldwide. This call is based on collaborative studies indicating that converting physical assets into crypto tokens could open new revenue streams in financial systems.
The Era of Tokenization and Ripple
Long emphasized that banks should not limit themselves to traditional methods but should turn towards crypto asset systems. A joint report with the Boston Consulting Group indicated that the tokenization of real-world assets could see significant growth by 2033.
“The global financial sector is on the brink of transformation; crypto assets offer new opportunities.” – Monica Long
Ripple Labs’ Tokenization Initiatives
Ripple Labs supports the tokenization process with technologies that enable rapid, secure, and cross-platform compatibility to enhance financial systems. The report noted that digitizing assets such as real estate and trade finance could facilitate the processing of a value amounting to $10 trillion. This study provides crucial data for financial institutions regarding cost reduction and access expansion through digitization.
XRP Ledger and RLUSD Stablecoin Applications
Ripple’s XRP Ledger network stands out in the tokenization process for enabling crypto asset transactions quickly and at low costs. The network provides infrastructure suitable for applications requiring high transaction volumes.
“The digitization of traditional assets simplifies access and management processes.” – Brad Garlinghouse
Additionally, Ripple Labs aims to facilitate crypto asset transactions for users without needing banking services through its RLUSD stablecoin. RLUSD operates on both the XRP Ledger and Ethereum platforms, allowing users to switch between financial instruments quickly and cost-effectively.
As the financial sector assesses the opportunities brought by digital transformation, it is believed that banks adapting to the tokenization process could achieve new revenue sources and increased efficiency. Studies offer promising data concerning the future of the industry, warning that institutions failing to adapt may fall behind in competition.