Japan-based financial-services company SBI Holdings thinks non-fungible tokens (NFTs) could be a good opportunity for the XRP Ledger (XRPL).
According to a report on Tuesday titled “Current Management Information Briefing,” SBI outlined reasons why it believes XRP could be a sound choice for the use of NFTs.
Under the section, “Building a More Sustainable, Scalable, and Accessible Future for NFTs with XRPL” in the report, the company said XRP has “extremely low transaction fees.” SBI also said the crypto can be “settled instantly” without much of an impact on the environment because it doesn’t rely on mining, making it an attractive choice.
NFTs are digital assets that can be created as unique contracts on a blockchain and generally represent a physical real-world good. They contain distinguishing bits of information that make them both unique from any other NFT and easily verifiable.
See also: What Are NFTs and How Do They Work?
“The blockchain XRP Ledger has the ability to tokenize not only XRP but also a variety of other assets,” the company said in its report.
SBI’s belief in XRP as a token extends beyond its potential use in NFTs. In May, SBI Ripple Asia, a joint venture between SBI Holdings and Ripple, introduced Cambodia’s first international remittance service using blockchain technology.
In March, SBI said shareholders who own at least 100 shares will be eligible to receive XRP worth 2,500 yen ($22.50) as a way of thanking them for their support.
In its report, the company also touched on NFTs as a use case in the art world, highlighting Beeple’s $69 million record-breaking sale in March.
“A blockchain certificate will ensure the authenticity of artworks as more reliable through a tamper-resistant and highly transparent blockchain mechanism,” the company said.
Still, the focus, according to the company, remains on the tokenization aspect, citing figures from the World Economic Forum that predict 10% of the world’s gross domestic product would be tokenized by 2027.
“Achieving impact at-scale across so many asset types will require the interaction of different blockchains and existing internet and financial infrastructures,” SBI said.