In a thought-provoking post on X, financial commentator John Squire declared , “In a tokenized world, $XRP is the liquidity layer.” His statement reflects a broader shift in how XRP is perceived, not merely as a speculative digital asset, but as a foundational element in the emerging architecture of tokenized finance. XRP as the Liquidity Engine of Tokenized Markets Tokenization , the process of converting real-world assets (RWAs) like bonds, currencies, and equities into blockchain-based tokens, is rapidly transforming global finance. As this trend accelerates, the need for a universal liquidity bridge becomes paramount. According to Squire, XRP is uniquely positioned to serve that role. Through Ripple’s On-Demand Liquidity (ODL) solution, XRP already enables cross-border payments without the need for pre-funded accounts. This functionality has made XRP instrumental in remittance corridors and low-friction settlement across fiat currencies. But the scope is now expanding. Ripple’s partnerships with institutions, including the $280 million digital commercial paper tokenized on the XRP Ledger (XRPL), mark XRP’s growing role in institutional capital markets. Challenging Market Cap Misconceptions Squire has consistently challenged what he calls “Excel logic”—the belief that XRP cannot reach higher valuations due to its market cap. He points to historical market behavior where small inflows led to significant price increases, highlighting how limited circulating supply and deep-pocketed holders create conditions for steep, liquidity-driven moves. With over 95% of XRP held long-term or locked in escrow, a relatively small increase in demand can create disproportionate upward pressure on price. This idea is not merely theoretical. Market cycles have shown how XRP can surge during periods of heightened demand, and Squire argues this dynamic will intensify as tokenized asset adoption grows. Real-World Tokenization Use Cases Squire emphasizes XRP’s real-world utility as tokenization gains traction . Forecasts suggest over $19 trillion in assets will be tokenized by 2033, and Ripple is already building infrastructure to support that future. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Projects such as real estate tokenization, tokenized treasuries, and debt instruments on XRPL reflect this evolution. Corporate adoption is growing, too—Webus recently announced a $100 million initiative to incorporate XRP into its treasury reserves. This expanding utility aligns with Ripple’s vision of the XRP Ledger as a platform for compliant, interoperable tokenized finance, bridging different asset classes and currencies seamlessly. Institutional Barriers and Compliance Workarounds Despite XRP’s capabilities, regulatory hurdles remain. Ripple’s CTO, David Schwartz , recently noted that Ripple cannot use the XRPL’s native decentralized exchange (DEX) due to compliance concerns. However, he supports the development of “permissioned domains”—private, regulatory-compliant zones within XRPL that would allow institutions to tap into its liquidity without breaching legal boundaries. Squire spotlighted this as a key solution to bridge institutional demand with decentralized infrastructure. John Squire’s assertion—that “XRP is the liquidity layer” in a tokenized world—is supported by a growing body of real-world evidence. XRP is no longer just a payment token; it is becoming the underlying engine that facilitates liquidity across tokenized economies. From enabling seamless global payments to powering institutional-grade tokenization, XRP is emerging as the bridge asset for tomorrow’s financial system . As tokenization continues to redefine how value moves, Squire’s insight may prove prescient: XRP could very well be the liquidity backbone of the next financial era. 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 Twitter , Facebook , Telegram , and Google News The post Pundit: XRP is the Liquidity in a Tokenized World appeared first on Times Tabloid .
