Just a few days after Aviva Investors made bold moves to tokenize its U.S. Dollar Liquidity Fund on the XRP Ledger, the firm behind the blockchain, Ripple, has moved to expand its infrastructure to improve institutional access.
In a major update released by Ripple, the company has announced new investments in ZILO and Lucuido to boost asset tokenization on the XRP Ledger.
XRPL sees major infrastructural boost
In its statement, Ripple noted that its decision to invest in both companies follows plans to expand the XRPL infrastructure so that it can seamlessly serve the growing institutional demand for tokenized investment products.
While both companies are renowned for developing infrastructure for digital capital markets, Ripple has invested in them to introduce regulated transfer agency services, digital asset issuance, and collateral mobility on the network.
Over the years, Ripple has remained committed to bridging the gap between financial institutions and blockchain technology. As such, this move allows it to facilitate the growing adoption of tokenized assets among institutions, especially on its primary blockchain, the XRP Ledger.
Ripple utilizes XRPL to solve issues with traditional capital markets
Ripple further mentioned that it is looking to expand the capital markets on the XRP Ledger due to limitations experienced by traditional markets, as they rely on systems that often leave collateral locked up and cause settlements to take longer than necessary.
With its new involvement with ZILO and Lucuido, Ripple is a step closer to solving those issues through the XRP Ledger by allowing tokenized assets to move faster, settle instantly, and be used more efficiently across financial markets.
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