White House predicts tokenization boom in 1–3 years, highlighting XRP Ledger as key blockchain infrastructure.
The White House predicts tokenization will become mainstream within 1–3 years. Ondo Finance Summit encountering Patrick Witt, Digital Assets Advisor, in focusing on blockchain tokens.
Tokenization is the process of converting real-world assets (such as real estate or commodities) into digital tokens. This trend is moving away from experimentation on a small scale to broader adoption in the financial markets around the world.
Tokenization Set to Transform Finance
Witt said tokenization is a “win-win” for investors and institutions. Regulators are creating frameworks to create greater transparency and security. The White House acknowledges this change as a “tokenization boom.” The plan is consistent with efforts to make the U.S. a global leader in digital assets. Experts expect tokenization to integrate into financial systems by 2029.
The XRP Ledger (XRPL) is receiving attention as an important platform. Banks and asset managers test tokenized bonds, stablecoin settlement on XRPL.
Early 2026 data indicates that there are about $500m in assets tokenized. There has been improved regulatory clarity. The GENIUS Act is passed in 2025 and the CLARITY Act is moved forward, which makes safe adoption of XRP by U.S. institutions possible.
The technology of XRPL facilitates its adoption. Ripple will adopt Confidential Transfers based on zero-knowledge proofs, Smart Escrows, and Lending Protocol. These upgrades could open up multi-billion-dollar yield opportunities. Institutions and retail investors are able to manage assets efficiently and securely, which will increase confidence in blockchain-based financial infrastructure.
XRP Market Impact and Outlook
The growth of tokenization is rapid. Public blockchains handled more than $24 billion in tokenized assets as of January 2026, before it was less than $1 billion in 2022. Ripple’s RLUSD stablecoin achieved $1.3 billion market cap that emerged as the third-largest U.S. regulated stablecoin. XRP rose 18.6% – to $1.53 – after a February 6 crash in the market, following Ripple’s announcement of its DeFi expansion.
Analysts are projecting strong growth. Standard Chartered says XRP could reach $8 by the end of 2026. Inflow of ETFs and adoption of RLUSD for cross-border payments are some of the driving factors.
Banks and Asset Managers are increasingly exploring XRPL for settlements, liquidity and tokenized yield products. Stablecoins are minimizing the cost and time of transactions across the globe.
Overall, the White House anticipates tokenization in the financial industry to become central to the field within 1-3 years. Moreover, the XRP Ledger provides secure, fast, and transparent infrastructure for tokenizing real-world assets. This advantage positions it to lead the market in digital asset adoption. Market participants and regulators are coming together to ensure the wider adoption and growth of XRP and RLUSD in 2026.