In the fast-paced race to digitize financial assets, institutional investors, asset managers, and banks are actively participating, aiming to tap into a market poised to reach a staggering $16 trillion in value.

Traditional finance (TradFi) entities are increasingly embracing the concept of tokenizing financial assets on public blockchains as the competition intensifies in the realm of blockchain-based tokenization.

Markus Infanger, RippleX’s senior vice president, revealed that TradFi players are now taking concrete steps to bring financial assets onto blockchain networks, driven by the need to implement practical solutions and address pain points across various value chains.

In an exclusive conversation with Cointelegraph during Paris Blockchain Week, Infanger emphasized the tangible progress being made as traditional finance begins to integrate blockchain technology into its operations.

“We’re witnessing a paradigm shift in blockchain technology, moving beyond mere speculation and into practical applications. The transition is underway,” remarked Infanger.

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TradFi’s inclination towards blockchain extends beyond mere experimentation; it seeks comprehensive solutions that encompass the entire blockchain ecosystem.

Infanger highlighted research projections indicating that the future value of tokenized markets could soar to $16 trillion, a figure significantly surpassing the total market capitalization of the entire cryptocurrency sector by eightfold.

“Just a few years ago, such projections seemed aspirational. Now, they are inching closer to reality, with the bulk of activity occurring on public blockchains. Initially, it seemed confined to private blockchain initiatives like JPMorgan Coin or IBM,” Infanger noted.

He disclosed ongoing advanced discussions with numerous financial institutions exploring tokenization projects to tokenize assets on the XRP Ledger. These institutions have already outlined distribution strategies and articulated specific use cases, illustrating a clear understanding of how they intend to leverage the underlying blockchain technology.

Source: cointelegraph.com

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