A recent tweet from the influential account All Things XRP has drawn renewed attention to the ongoing debate over which use case holds more transformative potential for XRP: cross-border payments or real-world asset tokenization. While XRP has long been associated with its role in payments infrastructure, particularly as a faster, more cost-effective alternative to SWIFT, the tweet contends that tokenization presents a far more disruptive and value-amplifying opportunity. XRP’s Established Role in Payments According to All Things XRP, XRP has already established dominance in payments, offering near-instant settlement at a fraction of traditional costs. The tweet outlines that XRP transactions settle in approximately three seconds and cost roughly 90% less than SWIFT-based transfers. Furthermore, XRP eliminates the need for pre-funded accounts, a feature that allows for more capital efficiency in cross-border money movement. Despite this, the tweet argues that the payment use case leads primarily to a “steady burn” of XRP, implying a gradual and predictable demand curve. While effective for long-term utility, this model lacks the immediate supply constraints that could drive significant upward price momentum. Tokenization Introduces a New Supply Dynamic In contrast, the tweet identifies tokenization as the more powerful catalyst for XRP’s value. Citing a projected $19 trillion market for tokenized real-world assets, All Things XRP notes that the XRP Ledger (XRPL) is built to support this evolution. The ledger can facilitate the tokenization of various asset classes, including real estate, bonds, and other tangible commodities. These processes rely on XRPL functionality, which incurs fees and requires liquidity in XRP, thereby directly tying the asset to the utility infrastructure. According to the tweet, the key differentiator lies in the supply mechanics introduced by tokenization. Unlike payments, which merely consume XRP through transaction fees, tokenization introduces the concept of XRP being locked into smart contracts or escrow-like structures to provide liquidity and facilitate trading of tokenized assets. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 This form of supply restriction creates what All Things XRP calls “real supply pressure.” As more XRP becomes unavailable for general circulation, the reduced supply could create upward price pressure, particularly if demand accelerates alongside broader tokenization adoption. David Schwartz Emphasizes Tokenization’s Efficiency Gains This viewpoint agrees with comments made earlier this year by David Schwartz, Ripple’s Chief Technology Officer and one of the architects of the XRP Ledger. In a February 13th Times Tabloid article covering Ripple’s “Crypto in a Minute” educational series, Schwartz explained that tokenization streamlines transactions and ownership processes. He pointed to real estate as a prime example, noting that converting property titles into digital tokens allows for more efficient asset management and fractional ownership. Schwartz also highlighted simplified ownership verification and enhanced collateralization as additional benefits of tokenization. By reducing paperwork and transactional friction, tokenization improves transparency and opens new markets that can directly engage with blockchain infrastructure. These features increase the demand for systems that utilize XRP for transaction fees and liquidity provisioning. Tokenization as the Preferred Growth Driver While XRP’s strength in payments remains a proven utility, the tweet by All Things XRP presents a compelling case for tokenization as the mechanism with greater potential to affect XRP’s valuation. The claim is straightforward: tokenization doesn’t just use XRP—it locks it. This alters the fundamental dynamics of supply and demand. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible f or any financial losses. Follow us on X , Facebook , Telegram , and Google News The post Payments vs Tokenization: Which one Will Make XRP Explode? Expert Explains appeared first on Times Tabloid .
