Blockchain Pioneer David Schwartz Discusses Ripple Part Role in XRPL Real-World Asset Tokenization
In the realm of blockchain technology, XRP Ledger, a time-tested platform and the native home of the XRP cryptocurrency, stands out as an ideal foundation for the tokenization of real-world assets (RWAs). Ripple’s Chief Technology Officer, David Schwartz, recently expounded on the merits of this blockchain and shared his predictions regarding when we might witness the advent of the first viable RWA protocols on the XRPL mainnet.
Ripple CTO on XRPL Tokenization Timeline
The prospects for real-world asset (RWA) tokenization projects making their debut on the XRP Ledger appear promising, with a potential launch as early as the next year or a year and a half. David Schwartz made this revelation in a video posted by the Flip The Chain team on October 13, 2023.
XRP Ledger’s appeal as a platform for tokenization protocols is underscored by its low transaction fees. Also seamless integration with on-chain exchange mechanisms. Notably, when dealing with real-world assets, users are keen on the ability to buy, sell, store, and transfer these assets without relying on traditional fiat currencies like the U.S. dollar, as Schwartz emphasized. In this context, the XRPL Decentralized Exchanges (DEXes) are poised to deliver the necessary level of accessibility for all market participants.
Ripple: The Inaugural RWA Protocols
The debut of the first viable RWA protocols on XRP Ledger may not be too far off. With potential launch dates in 2024 or early 2025. Enthusiasts on Crypto Twitter have speculated that assets such as Gold and real estate might be the frontrunners in embracing their virtual “avatars” on the XRP Ledger. RWAs and the protocols governing their operations have emerged as some of the most compelling narratives in the crypto space for the year 2023.
New DeFi Innovations on XRP Ledger?
Meanwhile, the XRP Ledger community eagerly awaits the validators’ verdict on the activation of the “XRPL AMM” proposal, known as XLS-30d. If accepted, this proposal could usher in seamless non-custodial exchange functionality on the XRP Ledger. Furthermore solidifying its status as a DeFi (Decentralized Finance) blockchain. However, the proposal currently enjoys limited support within the community, with only two validators—Ripple itself and katczynski.net—backing its inclusion in the rippled v1.12.0 release.
For the proposal to pass, it requires the support of 26 out of 33 votes. Presently, it has garnered only 3.03% of the necessary voting power. Additionally, another pivotal amendment called “Clawback,” essential for ensuring XRPL’s compliance with regulatory requirements, has secured 15.5% support, or five “yays,” from validators.
Conclusion
In summary, David Schwartz’s insights shed light on the promising future of RWA tokenization on the XRP Ledger. The XRPL community looks forward to real-world assets turning digital, with Gold and real estate leading. As the XRPL ecosystem evolves, the introduction of new DeFi features remains a topic of great interest, contingent on the support for key proposals within the community.
