UK FCA Approval Opens Path for Tokenized Gold on XRP Ledger

Ripple received an Electronic Money Institution licence and a Cryptoasset Registration in the UK earlier this year, the company said. Those approvals allow Ripple to scale payments operations and also clear the regulatory path for tokenizing gold on the XRP Ledger.

If the UK chooses the XRP Ledger for its gold tokenization infrastructure, billions of dollars could flow into the growing tokenization market, SMQKE said. Consumer demand and scaling challenges will determine the pace, he added.

The tokenization of real-world assets has been a growing trend in crypto. Bybit recently added tokenized equities from Meta and Tesla, pushing the market for on-chain stocks past $1.48 billion. That Bybit Adds Meta, Tesla xStocks as Tokenized Equities Hit $1.48B example shows how mainstream assets are moving on-chain, though gold tokenization introduces different custody and regulatory questions.

Ripple's UK regulatory status and the previous gold tokenizations on the XRP Ledger provide the foundation. Whether the UK moves forward with the XRP Ledger for its gold reserves will determine the scale of adoption.