Ripple has taken steps to enhance its partnership with Archax, the UK’s first registered crypto exchange and custodian. The aim of this expansion is to introduce a substantial amount of tokenized real-world assets (RWAs) to the XRP Ledger (XRPL) by the following year, with Ripple and Archax targeting hundreds of millions of dollars in this endeavor.
The announcement of this development was made by Ripple at the 2024 XRP Ledger Apex conference, attended by CEO Brad Garlinghouse and CTO David Schwartz. This move solidifies XRPL’s position as a leading network for RWA tokenization.
The collaboration between Ripple and Archax originally began in 2022, when Archax partnered with Metaco, a company later acquired by Ripple in 2023, to offer digital asset custody services. Archax is known for its partnerships with major financial institutions to promote RWA tokenization. Through this renewed partnership, the UK-regulated firm will utilize the XRPL to tokenize assets for these institutions.
XRPL, a layer-1 public blockchain, is well-equipped with features like tokenization, a native DEX, and compliance tools, making it ideal for supporting institutional-grade financial applications.
Brad Garlinghouse, CEO of Ripple, expressed his excitement about the expanded partnership, noting the increasing adoption of L1 blockchains like XRPL by financial institutions for tokenizing RWAs through regulated entities like Archax. He foresees a significant growth in this trend in the coming years.
Graham Rodford, CEO of Archax, believes that the industry is on the verge of mainstream adoption of crypto in real-world scenarios. He highlighted the benefits of RWA tokenization such as operational efficiency, access to liquid markets, and the transparency inherent in crypto. Rodford mentioned that Archax has already tokenized assets like debt instruments, equities, and money market funds.
As the only FCA-regulated digital securities exchange, Archax is uniquely positioned to offer DeFi benefits through RWA tokenization, supported by the capabilities of the XRP Ledger.
At Ripple’s 2023 Swell conference, Rodford made a bold prediction that the XRPL will process $50 trillion in tokenized value by 2025, although this projection has been met with skepticism by some community members.
RippleX, the development arm of Ripple, has also teamed up with tokenization company Zoniqx to introduce multi-asset tokenization to the XRPL. David Schwartz projected last October that the XRPL will become the preferred platform for tokenization within the next eighteen months.
The recent announcement regarding tokenization by Ripple has garnered significant interest from XRP enthusiasts, with the blockchain at the forefront of discussions. Community members like Moon Lambo have noted that this development will lead to increased TVL for the XRPL, an important metric to track.
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