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Ripple Report: The tokenization market will reach $19 trillion, with 90% of financial leaders optimistic about the influence of blockchain.
Recently, Ripple, CB Insights, and the UK's Blockchain Technology Centre released a significant report on July 30, exploring how TradFi invests in Blockchain. This report, titled "Digital Asset Banking Business," tracks 345 investments made by global banks from 2020 to 2024, including 33 funding rounds with amounts exceeding 100 million dollars. The report indicates that after the 2022 Crypto Assets winter and the FTX collapse, investment slowed down, but funding activities are expected to Rebound in 2024. CB Insights predicts that funding amounts for stablecoin companies will grow tenfold compared to 2024.
19 trillion dollars in tokenized assets are on the way: the financial track has already changed
Ripple noted in its report that the Boston Consulting Group expects tokenized assets to reach nearly $19 trillion by 2033. Ripple's own research found that 90% of global financial leaders anticipate that Blockchain will have a significant or massive impact on finance in the next three years.
This prediction shows that the attitude of traditional financial institutions towards blockchain technology has shifted from a wait-and-see approach to an active layout. Over the past four years, more than 100 billion dollars have been invested in blockchain globally, involving over 10,000 transactions. In the United States, 11% of community banks report plans to launch crypto assets services in 2022.
With the global adoption rate gradually heating up, Ripple (XRP) set a historical high in July, and the bulls are brewing the next wave of Rebound.
Active Participation of Global Systemically Important Banks (G-SIB)
Global Systemically Important Banks (G-SIB) made 106 investments during this period, including 14 rounds of massive financing. Goldman Sachs and Citigroup led with 18 investments each, followed by JPMorgan Chase and Mitsubishi UFJ Financial Group. HSBC became the first global bank to pilot quantum-secured tokenized gold trading in 2024.
The report stated: "This technology is no longer a fringe experiment, but a foundational pillar of modern financial infrastructure. Its applications in numerous financial use cases are rapidly expanding, with real-world appeal and institutional capital following suit." It further added: "Forward-looking banks are not only investing in Blockchain companies but are also actively integrating them into their own systems, moving from exploration to execution."
Improved Regulatory Transparency: Promoting Institutional Adoption
Regulatory transparency is also continuously improving, with the introduction of frameworks such as ISO 24165 Digital Token Identifier and the EU MiCA legislation, which facilitate further institutional adoption. Although skeptics have pointed out the volatility of Blockchain and the cybersecurity risks, the report concludes that innovations in encryption technology and tokenized asset access will make Blockchain a long-term force in the financial sector.
Conclusion:
Ripple's report paints a grand blueprint for the tokenized asset market. It is expected that by 2033, the scale of tokenized assets will approach 19 trillion dollars, thanks to the widespread recognition and active investment in blockchain technology by global financial leaders. With the deep involvement of traditional financial institutions and increased regulatory transparency, blockchain technology is moving from the margins to the mainstream, becoming a key pillar of modern financial infrastructure.