- A report indicates that the global market for asset tokenization is expected to rise from $0.6 trillion in 2025 to an astounding $18.9 trillion by 2033.
- Plans are underway to utilize the XRP Ledger for efficient cross-border transactions and settlements, driving XRP adoption.
- Notably, open interest has increased by 1.4% to reach $3.08 billion, along with a favorable long/short ratio suggesting a growing bullish trend.
- XRP has regained support above the 200-day EMA as bulls target a short-term goal of $2.25 on Friday.
XRP approached the vital $2.00 mark during the Asian session on Friday after a slight correction the day before strengthened support at $1.95. A recovery sparked by the previous pause on tariffs reached $2.09 on Wednesday, but the rally stalled as global markets adjusted and continued to assess the implications of the tariff policies in the United States. The recent report outlines the current landscape of tokenization, its anticipated growth over the next five to eight years, and underscores why it’s an opportune moment for early adopters, including institutions, to accelerate their engagement in this market.
Positioning XRP as a pivotal asset in the advancing tokenization landscape
For decades, the global financial system has functioned on a disjointed and outdated framework that often fails to align with the evolving demands of markets, clients, and capital, as highlighted in the report.
Tokens have evolved from simple cryptocurrency units to encompass various financial and non-financial instruments such as securities, real estate, and investment funds, enabling fractional ownership, swift transactions, and regulatory compliance.
The report forecasts that the tokenization of tangible assets is set to expand from $0.6 trillion in 2025 to a staggering $18.9 trillion by 2033, representing a 53% compound annual growth rate. The United States leads this tokenization movement, accelerating the adoption of tokenized funds, treasuries, and collateral. The current administration is likely to expedite progress by advocating for clear regulations surrounding digital assets.
Projected growth in tokenization through 2033
In a significant step on Thursday, the President enacted legislation that prohibits the IRS from collecting data used for tax reporting from decentralized cryptocurrency platforms.
The report emphasizes that tokenization is more than just a technological innovation; it is the result of a convergence of factors, including technological advancement and regulatory progress. This synergy presents an ideal setting for the adoption of XRP as more organizations explore blockchain solutions that ensure longevity and regulatory alignment.
“The transition to a tokenized economy is transforming financial assets into dynamic software tools. Tokenization is not merely an enhancement of the global financial framework—it’s a restructuring of the foundational infrastructure that financial institutions have relied upon for years,” the report states.
XRP price stabilizes as the weekend approaches
As of Friday, XRP traded around the $2.00 mark, with the 200-day Exponential Moving Average (EMA) providing immediate support at $1.95, indicating that bullish sentiment is in control.
The Relative Strength Index (RSI) has rebounded from near oversold levels to 43.62, reflecting increased bullish momentum, despite being below a descending trendline.
A daily close above the critical $2.00 threshold would solidify XRP’s enhanced technical position and encourage more traders to invest. A breakout to $2.25, which coincides with the confluence of the 50-day and 100-day EMAs, is anticipated to follow.
XRP/USD daily chart
Liquidation data reveals an intriguing balance between long and short positions in the 4-hour timeframe. Long liquidations are notably lower at $241,800, compared to short liquidations at $336,810, suggesting that bears are more vulnerable to a potential increase in XRP prices. At the same time, the 1.4% increase in derivatives’ open interest to $3.08 billion points to growing capital inflow and a more positive market sentiment.
XRP derivatives analysis data
XRP remains below the resistance of a descending trendline originating from the yearly peak of $3.39, as well as below the 50-day and 100-day EMAs, indicating that bearish pressure continues to pose a challenge that must be addressed for a sustainable upward movement.
Additionally, the token is susceptible to macroeconomic influences, especially with the ongoing tariff dispute between the US and China. President Trump’s announcement of a 90-day pause on tariffs on Wednesday could have significant implications, as countries negotiate terms that may affect XRP’s price trajectory.
SEC vs Ripple lawsuit FAQs
The classification varies based on the transaction type, as indicated by a court ruling on July 14, 2023:
For institutional investors or over-the-counter transactions, XRP is classified as a security.
In contrast, for retail investors who acquired the token through programmatic sales on exchanges and liquidity services, XRP does not qualify as a security.
The SEC has accused Ripple and its executives of raising over $1.3 billion through an unregistered offering of the XRP token.
While the judge ruled that programmatic sales do not qualify as securities, sales of XRP to institutional investors are considered investment contracts. In this instance, Ripple infringed upon US securities law and was fined $125 million.
The ruling presents a mixed outcome for both Ripple and the SEC, depending on one’s perspective.
Ripple achieved a significant victory with the determination that programmatic sales are not considered securities, which could be advantageous for the broader crypto space, given that many assets under scrutiny by the SEC are managed by decentralized entities that primarily sold their tokens to retail investors through exchanges.
However, this ruling does not clarify the crucial question of what designates a digital asset as a security, leaving ambiguity around whether this case will influence other ongoing lawsuits impacting numerous digital assets. Complex topics such as the necessary degree of decentralization to escape the “security” tag or how to differentiate between institutional and programmatic sales remain unresolved.
The SEC has intensified its enforcement actions against the blockchain and digital assets sector, launching charges against various platforms such as Coinbase and Binance for purportedly violating US securities regulations. The SEC asserts that the majority of crypto assets fall under the definition of securities and are thus subject to strict regulatory measures.
While the defendants can leverage parts of Ripple’s ruling to support their cases, the SEC can also find justification within it to sustain its regulatory approach focused on enforcement.