Austin King, founder of Omni and a longtime collaborator with Ripple, recently outlined what he believes could push XRP to become a $1 trillion asset.
According to King, XRP’s chances of reaching a $1 trillion market cap could depend on interoperability and expanding its utility across the decentralized finance (DeFi) ecosystem. In a post, he explained why this approach is important and how Ripple is setting itself up to capitalize on the opportunity.
XRP Could Thrive on Interoperability and Tokenization
King stressed that interoperability is the missing piece needed to take XRP to the next level. He highlighted Ripple’s co-founder Chris Larsen’s comments from a previous interview, where Larsen noted that while globalization has made progress in data and shipping interoperability, the financial sector lags behind.
Chris Larsen, the founder of Ripple, invested in my first company and $OMNI.
For over a decade he has seen the key blocker holding back $XRP from reaching its next stage: interoperability.
Why is this the key unlock? pic.twitter.com/zXP6kYtI5g
— Austin King (@0xASK) January 16, 2025
Notably, Larsen argued that enabling seamless interaction between financial networks could onboard billions of people into a more inclusive global system.
For context, Ripple’s way of tapping into this potential involves leveraging its strong relationships with traditional finance companies to tokenize real-world assets on the XRP Ledger. Interestingly, Ripple CTO David Schwartz has continued to stress this vision.
In one interview, Schwartz noted that the company’s long-term vision includes enterprise-focused products like stablecoins, asset tokenization, and lending services. These initiatives look to bridge traditional finance with DeFi. Notably, this could create opportunities for new revenue streams and expand the utility of XRP.
Because Ripple is expanding their core strategy for $XRP Ledger.
They are now leveraging their global base of traditional finance customers to tokenize the world’s assets.
This is powerful, but let’s think through the actual scale of the opportunity here: pic.twitter.com/JkGjRlZDE1
— Austin King (@0xASK) January 16, 2025
Speaking further, King revealed that Omni is partnering with Ripple to facilitate this vision. The collaboration starts with Ripple’s RLUSD stablecoin, which will enable the tokenization of assets from the XRP Ledger into the broader DeFi ecosystem.
King believes this could generate up to 400 times more revenue for XRP than the current fee model by integrating tokenized assets into the $125 billion multi-chain DeFi economy. He also confirmed there are ongoing private discussions with Ripple leadership about future initiatives to advance the tokenization strategy further.
ETF Wrappers and Inclusion in US Strategic Reserve
Meanwhile, in addition to interoperability, two other catalysts that could support XRP’s rise to a $1 trillion market cap are ETF products and its potential inclusion in a U.S. strategic reserve.
Specifically, several asset managers, including Canary Capital, Bitwise, WisdomTree, 21Shares, and CoinShares, have filed applications to launch XRP-based ETFs. The approval of such products could bring in substantial institutional investment and bolster demand for XRP.
Industry experts believe these filings have a higher chance of approval under the new leadership at the Securities and Exchange Commission (SEC).
In addition, recent developments in U.S. policy have triggered bullish speculations. A recent executive order from former President Donald Trump established a Presidential Working Group to evaluate crypto policies, including the creation of a digital asset stockpile.
As the largest “Made in America” crypto asset, XRP could be a strong contender for inclusion in this reserve. If realized, this potential development could massively bolster XRP’s adoption and valuation, possibly contributing to its journey to the $1 trillion market cap.
Currently, Bitcoin (BTC) is the only crypto asset that has crossed the $1 trillion valuation mark. At a $1 trillion valuation, XRP price would rise to $17, considering the current circulating supply of 57.6 billion tokens.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.