Breaking: Ripple Expands XRP Ledger Tokenization Push With New Strategic Investments

Ripple is continuing its tokenization approach with strategic investments in two companies that are dedicated to digital capital markets infrastructure (CMI): ZILO and Licuido. This deal boosts Ripple’s push to introduce regulated transfer agency, token issuance and collateral mobility features to institutional finance on the XRP Ledger.

Ripple Boosts XRP Ledger’s Tokenization Push

The investments represent a continuation of the Ripple’s partnerships with both entities, and are designed to enhance the way traditional financial assets are issued, transferred, settled and collateralized in tokenized markets, the company said. However, no details of the financial terms of the investments were given.

Today’s capital markets are still suffering from a set of legacy systems that delay settlement and block the utilization of collateral in inefficient processes, Ripple stated.

It has a built-in institutional structure to facilitate issuing, holding, maintaining collateral, multi-currency investing, and atomic settlement. Meanwhile, the regulated payment asset is RLUSD for delivery-versus-payment transactions.

Ripple Exec Explains Why The New Collaboration Is Important

While tokenization is a step in the right direction, it is not a complete solution for financial market transformation, says Nigel Khakoo, Senior Vice President of Trading and Markets at Ripple.

He said, “Tokenization of assets is only the starting point: the real value lies in what can be done with a token, including buying, selling, and settling trades instantly, or using it as collateral to borrow, lend, or post margin.”

As asset managers like Aviva Investors, Franklin Templeton and DBS invest in Ripple, this activity mirrors the growing institutional interest in the tokenization of investment products, Khakoo added. He believes the “core capabilities” of ZILO and Licuido are required for scaling regulated digital transfer agency services and collateral mobility in capital markets.

ZILO specializes in transfer agency and fund administration technology for asset managers, custodians and transfer agents. The investment from Ripple will enable the company to advance infrastructure for tokenized fund share classes, the company said. Meanwhile, it would aid in expanding the XRP Ledger’s tokenization initiative.

What Do Founders Have To Say?

ZILO Founder and CEO Phil Goffin said, “Ripple’s investment enables us to accelerate that work by bringing digital market utility and efficiency directly into our platform for the institutions we serve.”

Whilst, FCA regulated platform Licuido specializes in token issuance, distribution and trading digital assets. It can facilitate onchain settlement of traditional financial assets such as fund shares to be moved as digital collateral.

Licuido CEO and Co-Founder Brian Lynch said, “Ripple’s backing helps us to scale that infrastructure and our collateral marketplace on the XRPL, helping institutions turn assets that have sat idle on their balance sheets into liquidity they can actually use.”

Earlier this year, Ripple also tied up with Aviva Investors to tokenize traditional fund structures on the XRPL with ZILO and Licuido.

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