TLDR
- XRP price dropped 6% in 24 hours, reaching a low of $2.96 during the market dip.
- Pierre Rochard says tokenization won’t boost demand for ETH or XRP.
- Rochard claims DTCC’s existing system is more efficient than blockchains.
- Over $460 million in crypto positions were liquidated in 24 hours.
Bitcoin Bond CEO Pierre Rochard has criticized the growing focus on tokenization, calling it an unrealistic strategy for long-term value. His remarks arrive as XRP’s price falls nearly 6% in 24 hours, dropping to $2.96. The statement adds fuel to the ongoing debate over whether tokenization can actually boost blockchain adoption or deliver value to ETH and XRP holders in the long run.
Pierre Rochard Dismisses Tokenization as a Viable Investment Model
Pierre Rochard has challenged the idea that tokenization of traditional assets on public blockchains such as Ethereum or XRP Ledger can support the long-term value of their native tokens. He said that the current investment thesis assumes that more tokenized assets would lead to increased demand for tokens like ETH or XRP. According to him, this is not realistic.
“The thesis rests on burning fees to benefit token holders, while still needing to fund operations,” Rochard posted on X. He noted that this creates a broken model, especially when traditional financial systems already offer low fees and efficient service.
The investment thesis for holding ETH or XRP is that others will use the Ethereum network or XRPL for securities tokenization and that this usage will be paid for by burning ETH or XRP, thus accruing value to the holders who are not burning. While this may seem plausible when Joe…
— Pierre Rochard (@BitcoinPierre) August 17, 2025
Rochard also pointed to the role of the DTCC, the world’s largest securities clearing and settlement organization. He said that DTCC’s established infrastructure already functions well and has no reason to switch to blockchain-based alternatives. “DTCC is a cooperative owned by its users,” he added, suggesting that shifting to a blockchain would not reduce costs or improve operations.
He argued that tokenization only adds layers of complexity rather than value, and it may increase costs for those excluded from traditional finance. He said crypto platforms may pass operational fees onto retail users, who are often least able to bear them.
XRP and ETH Demand Not Tied to Tokenization, Says Rochard
Rochard questioned the assumption that growing tokenization will create direct demand for XRP or ETH. He stated that even if tokenized securities become more common, it would not mean more people would buy XRP or ETH.
“Increasing the utility of security tokens may marginally increase the demand for holding security tokens,” Rochard said. “But it has zero effect on demand for holding ETH or XRP.” He pointed out that blockchain platforms face constant competition. With open-source software, new platforms can launch with lower fees, making it hard for any one network to hold an advantage.
He also noted that Ethereum and XRP are often pitched as long-term investment assets. However, he warned that users may prefer to use those networks for transactions while holding value in more stable or credible assets like Bitcoin or stablecoins.
Rochard further criticized XRP’s credibility among institutions. He referred to XRP as a “retail token” and questioned its ability to hold long-term value, especially without large-scale adoption by major financial players.
XRP Price Falls as Tokenization Debate Continues
XRP fell nearly 6% in 24 hours, reaching $2.96. It was one of the poorest performers among the top cryptocurrencies during the market drop, with only Solana faring worse. The broader market also saw over $460 million in liquidations, mostly from long positions.
Rochard’s comments followed recent news about Ripple’s partnerships aimed at tokenizing real-world assets. Mercado Bitcoin announced a plan to tokenize $200 million worth of assets using the XRP Ledger. Ripple also partnered with Ctrl Alt and Dubai’s Land Department to tokenize property title deeds. These efforts are meant to improve asset transparency and liquidity.
Despite these developments, Rochard remains unconvinced that such projects will create long-term demand for XRP. He maintains that without a strong use case for holding the token, prices may continue to face pressure.
As the debate between Bitcoin supporters and altcoin developers continues, Rochard’s comments may influence how investors see tokenization projects going forward.
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