XRP Weekly Newsletter #6

Hello. Let’s do a quick recap on crypto week last week:

The CLARITY Act passed in a vote of 294-134 with 78 Democrats voting in favour - more than double the 35 expected, and more than the 71 who voted to pass FIT21 last year.

The GENIUS Act passed in a vote of 308-122 with 102 Democrats voting in favour.

The Anti-CBDC Act passed in a vote of 219-210 with 2 Democrats voting in favour.

The signing ceremony for the GENIUS Act took place at the White House on Friday.

A fitting (and happy) end to Crypto Week.

Moving on to this week… On Tuesday July 22nd, The White House is to release it’s first ever crypto policy report under executive order 14178. This could reshape U.S. crypto regulation and define government policy on digital assets and the blockchain.

In another piece of news it was revealed that President Trump is set to sign an executive order as soon as this week that would allow 401k retirement plans to invest in crypto. This opens $9 TRILLION worth of capital for alternative investments like crypto, gold, and private equity.

Is the Trump administration going to destroy the Fed? Trump is constantly having a dig at “Too Late” Jerome Powell and now Scott Bessent, the Secretary of the Treasury, is questioning The Fed… This is what he said on CNBC today: “What we need to do is examine the entire Federal Reserve and whether they have been successful… All of these PhD’s over there, I don’t know what they do… This is like Universal Basic Income for academic economists.”

The markets responded positively with XRP smashing through the $3 resistance level on Thursday and then beating it’s previous all time high of $3.45 on Friday meaning XRP is now officially in price discovery for the first time since 2018. As I write this newsletter on Monday the price is up to $2.63. Next up is the psychological resistance of $5.

The tokenisation of Real World Assets (RWA) and what does it mean?

If XRP was designed for payments then the XRP Ledger (XRPL) was designed for tokenisation. But what is tokenisation and what are Real Word Assets?

Real World Assets (RWA) are financial instruments e.g. treasuries, bonds, derivatives etc. Let’s take Stablecoins as an example as they are a major talking point at the moment… Stablecoins are basically tokenised fiat currency and we will see the stablecoin market increase to trillions of dollars very soon. This is going to be good for the dollar, which is leading the stablecoin revolution, as every dollar denominated stablecoin like USDT, USDC and RLUSD, has to be backed 1:1 with the US dollar in the form of treasuries. This is why the GENIUS Act is such a big deal for the U.S. as the world is dumping U.S. treasury bonds, stablecoins will mop up the excess treasury bonds dumped onto the market - review Jake Claver’s Domino Theory on how this could all play out as Japan, the biggest holder of U.S. treasuries, dumps their bonds on the market as the reverse carry trade unwinds.

Next we will see the tokenisation of equities, bonds, commodities, derivatives and real estate. By tokenising these assets and putting them on to blockchains we allow fractionalised ownership and real time settlement. This democratises the whole financial system, allowing everyone to play and prosper and not just the elite few. Couple this with the ability to buy, sell and settle trades in real time without the need for a third party to verify and approve transactions then we have a game changing and disruptive technology that is going to change the world order for the better. Did uyou know that 2 billion people (the un-banked) on the planet have no access to financial services? Now, everyone can get involved, all you need is a smart phone and a few quid and you can start your investing journey in real world assets. This is different to how it’s always been where only a few, already wealthy, accredited investors, are allowed to buy real world assets, while the rest of us have to work our arses off to earn a few depreciating pounds, dollars, euros etc, just enough to pay the bills and put food on the table. Slavery never actually ended…