Key Takeaways
- Ripple and Archax have extended their collaboration to tokenize RWAs worth over ‘hundreds of millions of dollars’ on the XRP Ledger (XRPL).
- The XRPL is set to introduce several new features such as Decentralized Identifiers, Multi-Purpose Tokens, a Lending Protocol, and Oracles. These enhancements aim to strengthen its capabilities for supporting institutional-grade DeFi and RWA tokenization.
- Both companies maintain a compliance-first approach, working closely with global regulators, which is crucial for encouraging institutional adoption.
Ripple and Archax, the UK’s first FCA-regulated digital asset exchange, have extended their collaboration to bring ‘hundreds of millions of dollars’ of tokenized RWAs to the XRP Ledger, enhancing the accessibility and liquidity of RWAs and establishing the XRPL as a premier blockchain for tokenization by mid-2025.
This strategic collaboration aims to position the XRPL as a leading blockchain for RWA tokenization.
Archax, recognized as the UK’s first Financial Conduct Authority (FCA) regulated digital asset exchange, broker, and custodian, has been at the forefront of integrating traditional financial assets with blockchain technology. The extended collaboration with Ripple will enable financial institutions to leverage the XRPL for tokenizing RWAs, thus unlocking a plethora of downstream use cases for these assets.
This collaboration represents a progression from the initial relationship established in 2022 when Archax joined forces with Metaco to offer digital asset custody services. Following Ripple’s acquisition of Metaco in mid-2023, the alliance between Ripple and Archax has evolved to focus on broader blockchain applications in financial markets.
Markus Infanger, SVP of RippleX, said: “Our industry is at the start of the next major adoption stage in which blockchain technology will deliver real utility in financial markets at scale.”
He further highlighted Ripple’s excitement about Archax’s vision, which aims to drive blockchain and digital asset adoption among financial institutions, while solidifying the XRPL’s credentials in RWA tokenization.
Archax CEO, Graham Rodford, mentioned the growing recognition of blockchain’s real-world utility. “We have hit the tipping point for mainstream adoption of digital assets for real-world use cases,” Rodford said.
He highlighted the operational efficiency, market liquidity, and transparency benefits inherent in crypto, which are now being acknowledged by financial institutions. Archax has already made strides by tokenizing assets such as equities, debt instruments, and money market funds.
The XRPL’s open-source public decentralized Layer 1 blockchain is well-suited for institutional-grade financial use cases, offering built-in capabilities like tokenization, a native decentralized exchange, and compliance features. Its robust infrastructure has supported over 1,000 projects, processed 2.8 billion transactions without failure or security breaches since 2012, and maintains over 5 million active wallets.
The expanded collaboration was announced at the XRP Ledger APEX 2024, the largest annual XRPL summit, held from June 11-13 in Amsterdam.
Update: The heading changed from “Ripple and Archax Deepen Partnership to Tokenize $300M RWAs on XRPL” to “Ripple and Archax Deepen Collaboration to Tokenize Hundreds of Millions of Dollars in RWAs on XRPL”. Related changes done inside the article. Updated by Neelesh Roy on 14 June 2024, 8:54 pm UTC.
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