Ripple Invests in Zilo and Licuido to Boost Tokenized Capital Markets
Vexoda Newsroom
Ripple has made strategic investments in Zilo and Licuido to expand its tokenized financial assets on the XRP Ledger, aiming to enable collateral mobility from issuance. This move comes amid growing i
Ripple has taken a significant step towards advancing the use of tokenized capital markets with strategic investments in Zilo and Licuido. These moves are part of Ripple’s broader strategy to integrate traditional finance into its blockchain ecosystem, specifically through the XRP Ledger (XRPL).
Zilo is a global transfer agency asset solutions provider for wealth managers, while Licuido specializes in tokenization services under UK regulatory oversight from the Financial Conduct Authority (FCA). Although financial details of the investments were not disclosed, Zilo has previously raised $58.7 million through equity funding.
By combining these investments with Ripple’s recent launch of its Ripple Mint platform and previous initiatives like RLUSD (Ripple USD), the company aims to address challenges related to collateral mobility in tokenized assets. This strategic move follows a week after London-based asset manager Aviva Investors launched a tokenized share class on XRPL, signaling growing interest from major financial institutions.
The significance of these investments lies in their potential impact on the broader ecosystem of tokenized real-world assets (RWAs). According to data from RWA.xyz, Ethereum currently leads with $17.1 billion worth of tokenized RWAs, while the total number of holders has increased by 50% over the past month.
Ripple’s efforts are part of a larger trend in financial markets towards digital asset adoption and regulatory compliance. By integrating these new partners into its blockchain infrastructure, Ripple hopes to facilitate smoother operations for institutions looking to issue and manage tokenized assets on XRPL.
Traders should closely monitor how these investments affect the liquidity and usability of tokenized assets within the XRP Ledger ecosystem. The broader implications could include increased adoption by traditional financial players and enhanced collateral flexibility in decentralized finance (DeFi) applications.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.