The $XRP Ledger is already unwinding tokenized government bonds, in line with Ripple CEO Brad Garlinghouse’s projection.
Major market observer Chart Nerd highlighted this in a recent publication X message, and emphasizes that it is ‘already happening’. The analyst specifically pointed to the strategic partnership between Ripple and Kyobo Life Insurance to settle tokenized government bonds on-chain.
Key points
- Garlinghouse predicted that it was only a matter of time before tokenized bond settlement occurred on-chain.
- The $XRP Ledger is the first decentralized network with a built-in organic tokenization framework at a basic level.
- The $XRP Ledger is already unwinding tokenized bonds, in line with Ripple CEO Brad Garlinghouse’s projection.
- Ripple pioneered the first token settlement of government bonds in South Korea in April.
Bond settlement is coming to the $XRP Ledger: CEO of Ripple
Particularly at the Crypto in America show in Las Vegas in early May, Garlinghouse discussed $XRP‘s usefulness outside the Ripple ecosystem. When asked if there are usage scenarios for this $XRP outside the central role in Ripple caught his attention, he mentioned tokenization.
The CEO specifically highlighted his recent research into bond settlements. He called the current process slow, arcane and absurd, given the current level of existing technology. As such, he predicted that it was only a matter of time before tokenized bond settlement occurred on-chain.
Meanwhile, given the $XRP Ledger’s core infrastructure has a major advantage in capturing this use case. Garlinghouse claimed that the $XRP Ledger is the first decentralized network with a built-in organic tokenization framework at a basic level.
As such, Ripple’s CEO discussed the likelihood of Ripple taking advantage of the $XRP Ledger to take over that use case.
Process is already underway
However, Chart Nerd noted that the $XRP Ledger is already unwinding bonds in near real time, citing the Kyobo partnership. For the uninitiated, Ripple was a pioneer the first symbolic settlement of government bonds in South Korea in April.
Notably, the company used its Ripple Custody platform to issue, settle and store the tokenized bonds using the $XRP General ledger. The bond settlement, in collaboration with Kyobo Life Insurance, marks an important step in improving the current process.
With multiple intermediaries, such settlements take days. However, the $XRP Ledger technology can perform the process almost instantly, improving efficiency and reducing counterparty risk.
Strikingly, the global bond market is estimated to be worth around $140 trillion. Recording a large part of the settlement process increases its usefulness $XRP and the General Ledger.
Ripple aimed at the $XRP Strengths
While Garlinghouse highlighted Ripple’s plans to expand the $XRP General ledger and improvement of the adoption of its “North Star” $XRPhe emphasized the need for specialization.
“It’s becoming a multi-chain world,” Garlinghouse noted.
He noted that the $XRP Ledger is exceptionally good in some areas and subpar in others. Trying to be “all things to all people” weighs on the blockchain’s power in terms of speed and transaction costs. In conclusion, he noted that the ecosystem must focus on the areas in which it thrives by design.