Anticipated Tokenization Trends for the Next Five Years, as Outlined by Ripple
The XRP Ledger, a prominent decentralised financial network, has welcomed a significant amendment. This update introduces a set of tools for managing authorisation and compliance requirements, known as the Credentials amendment.
One of the first institutions to utilise this new amendment is Société Générale FORGE, the crypto arm of the French financial services company Société Générale. They have issued a EURO-backed stablecoin, EURCV, on the XRP Ledger using Ripple Custody.
The Credentials amendment allows for the creation, acceptance, and deletion of digital credentials on the XRPL mainnet. These credentials can be used to attest to compliance requirements such as KYC (Know Your Customer) and AML (Anti-Money Laundering) for users or institutions.
Meanwhile, Ripple, the company behind the XRP Ledger, continues to predict that 10% of global assets will be tokenized by 2030. This prediction, however, does not provide specific details about the impact of the new Credentials amendment on this projection.
Elsewhere, Ripple's stablecoin, RLUSD, is becoming increasingly popular. Institutions in Africa can now access RLUSD through partnerships with Chipper Cash, VALR, and Yellow Card. Additionally, BDACS in South Korea is custodying Ripple's stablecoin, Ripple USD (RLUSD).
Crypto assets under custody are projected to reach $16 trillion by 2030, according to unspecified sources. This projection, like Ripple's, does not offer insights into how the new Credentials amendment may contribute to this figure.
In a recent development, XRPScan reported the creation of the first Credential on the XRPL mainnet. This marks the official launch of the Credentials amendment on the XRPL's mainnet.
As the XRP Ledger continues to evolve, it remains to be seen how the Credentials amendment will impact the future of digital assets and compliance in the financial sector.
