Ripple President Monica Long predicts that some of the world’s largest banks could launch market-ready tokenized asset offerings in the U.S. this year.
Long made the prediction today in response to a recent statement from Frank Chaparro, the host of The Scoop podcast.
In an X post yesterday, Chaparro suggested that large banks can do anything if allowed to custody crypto assets. He speculated that this move could unlock greater liquidity, support the crypto market structure, and reduce volatility associated with crypto assets
Notably, Chapparo’s projection comes amid discussions that Donald Trump’s transition team, alongside his newly appointed White House AI & Crypto Czar, David O. Sacks, are collaborating with crypto stakeholders to develop a legislative plan for the industry.
Part of the plan includes addressing pivotal issues affecting the industry. They include de-banking and a contentious policy that discourages banks from engaging with crypto by requiring them to hold digital assets and count them as liabilities on their balance sheets.
Ripple President Highlights Large Banks’ Significant Interest in Tokenization
With the upcoming administration working to address these issues, Ripple’s president suggests that large banks’ engagement with crypto via custodying will significantly impact the market.
She shed light on how large financial institutions are showing significant interest in tokenization. Monica revealed that 15 of the world’s 25 largest banks have already piloted tokenized projects, indicating significant interest in tokenization.
Consequently, she projected that most of these banks could roll out market-ready tokenized asset offerings in the United States this year. However, she emphasized that this will only happen if the United States government provides regulatory clarity, allowing banks to engage with crypto assets.
Furthermore, the Ripple president expressed confidence that the industry could achieve the much-needed regulatory clarity this year.
Agree @fintechfrank! 15 of the 25 largest banks globally have already piloted tokenized asset projects…I expect several of them to launch market-ready offerings in the US in 2025 IF they have clarity from the US govt to touch crypto — seems very possible for this to no longer… https://t.co/OelnJFfYhg
— Monica Long (@MonicaLongSF) January 14, 2025
Ripple’s Tokenization Effort
It is worth noting that Ripple is aiming to be a major player in the tokenization sector. This market is projected to reach a valuation of $16 trillion by 2030. Specifically, the San Francisco-based company hopes to transform the real estate industry through tokenization.
In 2023, Hong Kong-based Fubon Bank partnered with Ripple on a real estate tokenization pilot. The pilot, which combined e-HKD and tokenized real estate, allowed users to obtain collateral for loans using their real-world assets.
There is still no official date when Fubon Bank will complete the test and launch a market-ready offering.
