Ripple Labs President Monica Long has projected a mass adoption of crypto innovations by mainstream banks soon
The future of crypto is on the edge of a breakthrough, and Ripple Lab’s President, Monica Long, has a bold prediction. In a recent X post, she said that everything could change if large banks can handle crypto. This idea is gaining attention, especially as the incoming President Donald Trump’s transition team explores ways to support the crypto industry.
Frank Chaparro, host of The Scoop podcast, recently sparked the conversation. He suggested that allowing banks to hold crypto could bring stability and growth to the market. Monica Long agrees, but she says there is one catch: the U.S. government needs to provide clear rules for this to happen.
Why Banks Could Be Crypto’s Missing Puzzle Piece
Chaparro believes letting banks manage crypto could unlock liquidity, making it easier to move money in and out of the crypto market. This could also reduce the wild price swings that make digital assets risky.
Agree @fintechfrank! 15 of the 25 largest banks globally have already piloted tokenized asset projects…I expect several of them to launch market-ready offerings in the US in 2025 IF they have clarity from the US govt to touch crypto — seems very possible for this to no longer… https://t.co/OelnJFfYhg
— Monica Long (@MonicaLongSF) January 14, 2025
But current rules make it hard for financial institutions to dive in. Policies require them to treat crypto as liabilities, discouraging involvement. Trump’s incoming team and newly appointed AI & Crypto Czar David O. Sacks are reportedly working on plans to fix these problems.Â
Their goal is to make it easier for banks to embrace crypto. These executives also aim to address issues like de-banking, which has left many crypto companies without traditional financial support.
Monica Long highlighted another exciting trend: Real World Asset (RWA) Tokenization. This process turns real-world assets, like property or stocks, into digital tokens that can be traded on a blockchain. It is faster, more secure, and opens up opportunities that did not exist before.
Major banks are already paying attention. Fifteen of the world’s top 25 banks have experimented with tokenized projects, acknowledging their potential. Monica believes that many of these banks could roll out tokenized products in the U.S. this year with clear rules.
Ripple is not just talking about tokenization; it is taking action. The company aims to lead this $16 trillion market by 2030, focusing on transforming industries like real estate.
Ripple Labs’ Real Estate Vision
In 2023, Ripple, who recently joined the American Banking Association, teamed up with Hong Kong’s Fubon Bank to test tokenized real estate. The pilot allowed users to use their digital real estate assets as collateral for loans, combining blockchain with real-world value.
While the project has not yet been fully launched, it shows what is possible when crypto meets traditional finance. Ripple sees tokenization as a way to make industries like real estate more accessible and efficient.
The crypto industry is waiting for its moment, which could come with regulatory clarity. If banks can hold and manage digital assets, it could bring trust and stability to a market known for its ups and downs.
Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of BGECrypto’s content as such. BGEcrypto does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making any investment decisions.
