Payments vs Tokenization: Which one Will Make XRP Explode? Expert Explains
By: times tabloid|2025/05/08 21:15:01
0
Share
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 PaymentsAccording 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 DynamicIn 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, 2023This 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 GainsThis 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 DriverWhile 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 for any financial losses.Follow us on X, Facebook, Telegram, and Google NewsThe post Payments vs Tokenization: Which one Will Make XRP Explode? Expert Explains appeared first on Times Tabloid.
You may also like

Exchanging 200,000 for nearly 100 million, DeFi stablecoins face another attack
DeFi project teams cannot assume that the modules they control are necessarily secure.

The underlying business agreement of the trillion-dollar Agent economy: Understanding ERC-8183, it's not just about payments, but the future
This article systematically analyzes the technical principles and commercial value of the ERC-8183 protocol from the dimensions of technical architecture, core mechanisms, application scenarios, and ecological collaboration.

When Wall Street's ETH begins to "yield": Looking at the asset properties of Ethereum from BlackRock's ETHB
ETH is undergoing a paradigm shift from a "volatile asset" to a "yield-generating cash flow asset."

The Power of Agency: The Agentic Wallet and the Next Decade of Wallets
In 1984, Apple killed the command line with a mouse. In 2026, Agent is killing the mouse.

Understanding x402 and MPP in One Article: Two Routes for Agent Payments
x402 makes payments within the agreement, while MPP makes system-level payments.

Particle Founder: The entrepreneurial insights I have gained the most from in the past year
Stop lean startup, stop lightning entrepreneurship, and think carefully about what your product aspirations are.

Huang Renxun's latest podcast transcript: The future of Nvidia, the development of embodied intelligence and agents, the explosion of inference demand, and the public relations crisis of artificial intelligence
The competition in the future is not just about whose model is larger or whose computing power is stronger, but also about who understands the industry better, who can embed AI more deeply into real processes, and who can organize these capabilities into a runnable and scalable system.

OKX Ventures Research Report: AI Agent Economic Infrastructure Research Report (Part 1)
The existing infrastructure is hostile to the Agent economy. Agents can think and act independently at the "capability level," but at the "economic level," they are still locked into infrastructure designed for humans.

The migration of settlement rights: B18 and the institutional starting point of on-chain banks
In the traditional system, banks decide the settlement; in the on-chain system, code begins to take over this responsibility.

From Tencent and Circle: Looking at the Simple and Difficult Questions of Investment
The AI narrative continues to ferment, but the recent performance of related stocks varies, with some in the midst of summer and others as if in winter.

The second half of stablecoins no longer belongs to the crypto circle
What Coinbase doesn't want, Mastercard is eager to buy.

Cursor "Shell" Kimi Controversy Reversed: From Copyright Infringement Allegations to Authorized Collaboration, China's Open Source Model Once Again Becomes a Global AI Foundation
Cursor was accused of being based on Kimi K2.5, which sparked controversy, and was later confirmed to be compliant through Fireworks AI due diligence.

The Real Reason Tokens Don't Sell: 90% of Crypto Projects Overlook Investor Relations
Provide an Investor Relations Best Practices Guide for Crypto Projects.

Is the income of pump.fun real, earning a million dollars a day despite the market downturn?
If it can really earn this much, what is the reason for the low price of $PUMP?

The real reason why tokens are not selling: 90% of crypto projects neglect investor relations
Investor Relations Practice Guide for Cryptocurrency Projects.

Who is the true winner of the "Tokenization" narrative?
Virtually everyone benefits, but the reason for the benefit, the timing, and the underlying logic are completely different.

Moss: The Era of AI-Traded by Anyone | Project Introduction
AI Trading Agent is rapidly growing its infrastructure.

Chip Smuggling Case Exposes Regulatory Loophole | Rewire News Evening Update
AI chips have become a strategic asset more sensitive than missiles
Exchanging 200,000 for nearly 100 million, DeFi stablecoins face another attack
DeFi project teams cannot assume that the modules they control are necessarily secure.
The underlying business agreement of the trillion-dollar Agent economy: Understanding ERC-8183, it's not just about payments, but the future
This article systematically analyzes the technical principles and commercial value of the ERC-8183 protocol from the dimensions of technical architecture, core mechanisms, application scenarios, and ecological collaboration.
When Wall Street's ETH begins to "yield": Looking at the asset properties of Ethereum from BlackRock's ETHB
ETH is undergoing a paradigm shift from a "volatile asset" to a "yield-generating cash flow asset."
The Power of Agency: The Agentic Wallet and the Next Decade of Wallets
In 1984, Apple killed the command line with a mouse. In 2026, Agent is killing the mouse.
Understanding x402 and MPP in One Article: Two Routes for Agent Payments
x402 makes payments within the agreement, while MPP makes system-level payments.
Particle Founder: The entrepreneurial insights I have gained the most from in the past year
Stop lean startup, stop lightning entrepreneurship, and think carefully about what your product aspirations are.