Ripple’s XRP Gets Government Approval to Start Tokenizing Assets

Real estate, art, and commodities are examples of tangible and intangible assets that can be easily converted into digital tokens that can be processed on a blockchain network. This process opens up the market to a whole new level of liquidity, transparency, and accessibility.

The foundation of this asset tokenization is blockchain technology, which provides us with a safe, unchangeable, and effective transaction method. Because this blockchain network is decentralized, it eliminates all middlemen from the process, which lowers costs and speeds up transactions. XRP Ledger is one of the most well-known blockchain systems accessible today. It is a highly strong technology that can be used to tokenize real-world assets. It is well-known for its low transaction costs, energy efficiency, and scalability.

Ripple’s XRP Gets Approved by U.S. Treasury to Start Tokenizing Assets

People familiar with the matter has disclosed in an emergency closed door meeting on December 17, 2024 that Ripple’s XRP has just received government approval to start tokenizing assets on the XRPL blockchain. “XRP will start to see big momentum in 2025 as the start of the tokenization process continues,” said people familiar with the matter.

With the process starting, XRP will rise to over $50 in the first half of 2025. The launch of stablecoin RLUSD solidifies this approval. The stablecoin approved by the New York Department of Financial Services will require XRP for transaction fees, which are burned during transfers, driving demand for the token. Axelar co-founder Georgios Vlachos noted that RLUSD’s utility, particularly in emerging economies where stablecoins are widely used for transactions and savings, will significantly boost XRP adoption in 2025. Axelar’s interoperability platform also links XRPL to 70 other blockchains, enabling seamless integration.

XRP’s recent gains reflect a combination of market catalysts, including favorable regulatory prospects, technical advancements, and rising institutional interest. With the RLUSD stablecoin and asset tokenization set to play a critical role in XRP’s ecosystem, the token is poised to remain a key player in the cryptocurrency market heading into 2025.