Ripple joins BlackRock, Standard Chartered on DFSA tokenization white paper
In brief
- Ripple contributed to a DFSA-commissioned white paper titled "Scaling Tokenization: The Road Ahead."
- BlackRock, Standard Chartered, Robinhood, Soter Insure and DFSA staff were also listed as contributors.
- Reece Merrick of Ripple pointed to tokenized treasuries used as collateral in repo and margin.
- Merrick predicted strong growth over 12 months, with a significant share on the XRP Ledger.
Who else is on the paper
The contributor list mixes big traditional finance, crypto and the regulator itself. BlackRock's Tony Ashraf (Managing Director, Head of Technology & Operations and Head of Digital Assets, Middle East & Africa) is on it. So are René Michau, Standard Chartered's Global Head of Digital Asset Advisory, and Coy Garrison, Senior Director and Deputy General Counsel for Crypto at Robinhood. Henson Orser, founder and chief executive at Soter Insure, and Herman Schueller, the DFSA's Director of Innovation and Technology Risk Supervision, were also listed.
They're co-contributors to a regulator's paper, not Ripple partners.
What the DFSA report says
According to U.Today's summary, the white paper considers the conditions that may support the responsible scaling of tokenised financial assets and related market infrastructure, including within the Dubai International Financial Centre (DIFC). The report said tokenization of traditional financial assets had the potential to become a significant development in mainstream financial markets, citing greater investor access, more efficiency for issuers and intermediaries and reduced risk (especially around settlement).
Forecasts for the market's size vary considerably. Citi Institute's base case puts the global tokenised financial asset market at $5.5 trillion by 2030. A Standard Chartered and Synpulse paper estimated demand could reach $30.1 trillion by 2034.
Merrick's view on collateral
Merrick's argument isn't really about AUM. He said the real shift is the on-chain utility of tokenized treasuries and money market funds as collateral in repo and margin without redeeming to cash, not just their growth in assets under management. U.Today noted that repo markets move trillions daily, and Merrick highlighted that as potential for tokenization.
He's also making a call. Merrick said he expects massive growth in this area over the next 12 months and predicted that a significant proportion of it will be on the XRP Ledger (that's his forecast, not a settled outcome).
He tied that view to the region's setup, naming clear frameworks, institutional custody and Ripple's RLUSD as a settlement asset.
"With clear frameworks, institutional custody, and trusted settlement assets like RLUSD , the UAE, DIFC and Ripple are positioned at the forefront of this next phase," Merrick stated.
Frequently asked questions
Who contributed to the DFSA's "Scaling Tokenization: The Road Ahead" white paper?
U.Today reported that contributors included Ripple's Reece Merrick, BlackRock's Tony Ashraf, Standard Chartered's René Michau and Robinhood's Coy Garrison. Henson Orser of Soter Insure and Herman Schueller of the DFSA were also listed.
How large could the tokenised asset market get?
Forecasts vary considerably. Citi Institute's base case projects the global tokenised financial asset market reaching $5.5 trillion by 2030, while a Standard Chartered and Synpulse paper estimated demand could reach $30.1 trillion by 2034.
What does Ripple's Reece Merrick see as the main shift in tokenization?
Merrick said the real shift is the on-chain use of tokenized treasuries and money market funds as collateral in repo and margin without redeeming to cash, not just their AUM growth. He predicted strong growth over the next 12 months, with a significant share on the XRP Ledger.
