Ripple (XRPUSD)

[europa7]

Deposit Tokens Gain Favor in Commercial Banking
https://www.pymnts.com/blockchain/2024/why-deposit-tokens-rule-tokenization-landscape/

NOTE: tokenization of real-world asset use cases growing...new market opportunities emerging...very interesting...

(excerpt form article) "...While there exists a variety of “tokens” within the 21st-century payments and financial services landscape, with innovations ranging from cryptocurrency tokens to tokenized payments, it is a third token, tokenized commercial bank assets — or deposit tokens — that are increasingly being embraced as liquid means of payment and stores of value in blockchain-native environments.

Ripple and Archax announced Thursday (June 13) that they extended their existing partnership, aiming to bring hundreds of millions of dollars of tokenized real-world assets onto the XRP Ledger. The move shows that meeting the demand for blockchain-native cash equivalents is top of mind for firms.

As the digital transformation of finance accelerates, the landscape of money is evolving rapidly and tokenized deposits represent an advancement in the way banks and their end-users perceive and use digital currency, bridging the gap between traditional banking and the world of blockchain technology.

Deposit tokens are digital representations of traditional bank deposits, issued by regulated financial institutions and backed 1-to-1 by fiat currency held in reserve. Unlike cryptocurrencies such as bitcoin or ethereum, which are decentralized and often subject to volatility, deposit tokens offer stability and reliability by ensuring each token corresponds to a specific amount of fiat currency. This backing by real-world assets provides a layer of trust and security that is necessary for widespread adoption..."