- Ripple and Archax expand their partnership to bring millions in tokenized RWAs to the XRP Ledger, strengthening XRPL’s position in the market.
- The XRP Ledger’s built-in tokenization and compliance features make it ideal for institutional-grade financial applications and RWA tokenization.
- The Ripple-Archax partnership boosts operational efficiency and market liquidity via blockchain technology.
Ripple and Archax have announced an extended partnership aimed at bringing millions in tokenized real-world assets (RWAs) to the XRP Ledger (XRPL) over the next year. This development, revealed at the 2024 XRP Ledger Apex conference, marks a significant step in establishing the XRPL as a major platform for RWA tokenization.
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Strengthening the Partnership
The collaboration between Ripple and Archax began in 2022, with the initial focus on digital asset custody services. The partnership gained momentum when Ripple acquired Metaco in 2023, further integrating their efforts. Archax, a UK-regulated firm known for its collaboration with leading financial institutions, will leverage the XRPL to facilitate the tokenization of various assets for these institutions.
Ripple’s SVP of RippleX, Monica Long, highlighted the industry’s transition to a new phase where blockchain technology is expected to provide substantial utility in financial markets at scale. By utilizing the XRPL, financial institutions can tokenize their assets, enhancing operational efficiency, market liquidity, and transparency.
Built-In Capabilities of XRPL
The XRP Ledger, a layer-1 public blockchain, offers built-in capabilities such as tokenization, a native decentralized exchange (DEX), and compliance features. These attributes position the XRPL as a suitable platform for institutional-grade financial applications, enabling the secure and efficient tokenization of RWAs.
Brad Garlinghouse, CEO of Ripple, emphasized the growing trend of financial institutions adopting L1 blockchains like XRPL for RWA tokenization. He anticipates this trend will continue to accelerate. Graham Rodford, CEO of Archax, pointed out that the industry is at a tipping point for mainstream crypto adoption in real-world use cases. He underscored the benefits of RWA tokenization, including operational efficiency, access to liquid markets, and inherent transparency of blockchain technology.
Previous and Future Projections
Archax has already tokenized assets such as debt instruments, equities, and money market funds. As the only FCA-regulated digital securities exchange, Archax is uniquely positioned to provide access to decentralized finance (DeFi) benefits via RWA tokenization on the XRPL.
At the 2023 Swell conference, Rodford predicted that the XRPL would process $50 trillion in tokenized value by 2025. While this projection has faced skepticism, RippleX continues to push forward with initiatives to enhance the XRPL’s tokenization capabilities, including a partnership with tokenization company Zoniqx.
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