Something is brewed in the real world asset tokenization sector, and Bitwise CIO Matt Hougan believes that the best way to gain exposure is through assets such as XRP.
Industry leaders shared his thoughts at his weekly CIO Notehe talks about cryptocurrency in five minutes. In this week’s edition, he highlighted the great potential and how to buy in the tokenization industry. XRP It is a way to be exposed to new technologies.
Tokenization: the next big thing
For beginners, real-world asset (RWA) tokenization is a technological advancement that incorporates traditional assets such as stocks, bonds, and real estate into the blockchain. In particular, the initiative is slowly gaining momentum, with BlackRock CEO, Larry FinkI’m a huge fan.
In the report, Hougan shared a quote from BlackRock CEO. This claims that everything from stocks to bonds, funds and assets will one day be tokenized. He further emphasized that this would be a great opportunity for investors, offering an untapped trillion dollar market.
For example, stocks and bonds are a market totaling $257 trillion, with the former at $117 trillion and the latter at $140 trillion. That alone offers the opportunity for the heatedly debated Stablecoin market, where U.S. Treasury Secretary Scott Bescent is projected to reach $2 trillion by 2030.
Great progress in tokenization
Meanwhile, Hougan highlighted some promising developments in the tokenization sector last month. One of them is the $200 million tokenization plan for the XRP ledger. For context, Mercado Bitcoin, a prominent Latin American crypto exchange; announcement On July 4th, the $200 million RWA was tokenized on the XRP ledger RWA, including fixed and stock-income products.
Additionally, Robinhood and Kraken have launched tokenized stock trading platforms based on Ethereum’s Arbitrum and Solana Network, respectively. As these platforms only open to non-US users, Coinbase has filed a request with the Securities and Exchange Commission to allow Americans to access to tokenized stocks.
Interestingly, the Coinbase petition is expected to get approval when US SEC Chairman Paul Atkins brands tokenization as a “significant innovation.” He made this statement in a recent media interview, highlighting the committee’s commitment to moving forward with tokenization in the American market.
XRP retention: morphology of exposure to tokenization
To invest in this rapidly growing sector where the Fink project could rise 4,000 times over the next few years, Hougan has recommended investments in “a basket where layer 1 blockchain and infrastructure revitalize.” Among them are Ethereum, XRP, Solana and Chain Link.
Interestingly, XRP ledgers have emerged as a major medium of RWA tokenization and are involved in several institutional attempts. For example, the Land Sector (DLD) of Dubai I chose XRPL network As infrastructure for real estate tokenization projects.
As a result, Hougan suggested that holding XRP could be a play to profit from the growing tokenization market. Especially recently analysis XRP shows that if it captures 20% of the $18 trillion tokenization market forecast for 2033, it can trade between $37 and $54, depending on the circular supply.
Meanwhile, Bitise CIO also mentioned exposure to crypto stocks such as Coinbase, Circle and Robinhood as a supplemental investment tool for tokenization.
