What to know:
- Ripple invests in ZILO and Licuido to strengthen XRP Ledger’s institutional tokenization infrastructure capabilities.
- New partnerships enable regulated asset issuance, transfer agency, and collateral mobility for tokenized markets.
- RLUSD powers atomic settlement, improving efficiency for institutional blockchain-based financial transactions and payments.
Ripple has expanded its institutional blockchain strategy with strategic investments in UK-based transfer agency technology provider ZILO and FCA-regulated tokenization platform Licuido.
Although financial terms were not disclosed, the investments will add regulated transfer agency, digital asset issuance, and collateral mobility capabilities to the XRP Ledger (XRPL), strengthening Ripple’s infrastructure for tokenized financial assets.
The move builds on existing partnerships with both firms and reflects Ripple’s broader strategy to modernize traditional capital markets through blockchain technology.
The company said global financial markets still rely on outdated systems that create settlement delays, leave collateral underutilized, and restrict liquidity.
Its institutional platform aims to solve these challenges by combining token issuance, custody, collateral management, multi-currency investment, and atomic settlement on XRPL, with its RLUSD stablecoin serving as the regulated cash leg for delivery-versus-payment transactions.
Source: Ripple’s X Post
Also Read: Ripple Expands RLUSD Reach With Strategic Investment in Notabene
Ripple Expands Institutional Tokenization Infrastructure
The Senior Vice President of Trading and Markets at Ripple, Nigel Khakoo, referred to tokenization as moving into a new chapter where true value is created through the trading, settling, financing, and use of digital assets as collateral and not just parking those assets on the blockchain.
According to him, ZILO and Licuido are what is needed for institutions to take up tokenized fund structures.
ZILO provides technology solutions for transfer agency and fund administration, including tokenization of shares, without impacting the regulatory shareholder records.
The Licuido solution, which is also an FCA-regulated platform, enhances these services by enabling issuance, distribution, trading, and use of traditional financial assets as digital collateral through on-chain atomic settlement.
Built on Ripple’s Growing Institutional Partnerships
The investment will further strengthen the company’s relationship with major financial institutions. In recent months, the company partnered with Aviva Investors to tokenize traditional funds on the XRP Ledger and became the first investment management company in Europe to do so.
This came after the Central Bank of Ireland gave its blessing to Aviva to issue a tokenized share class of its U.S. Dollar Liquidity Fund on the XRPL. The company has also announced Ripple Mint, which allows institutions to create, redeem, and manage the RLUSD stablecoin.
The latest investments complement Ripple’s broader vision of building regulated infrastructure for digital capital markets rather than focusing solely on asset tokenization.
What Happens Next
The market of tokenized real-world assets continues to grow, as RWA.xyz has issued almost $37.3 billion worth of tokenized assets with approximately 1.57 million holders.
The Ethereum blockchain remains the dominant blockchain for RWAs, whereas Ripple continues to move the XRPL towards institutional players through regulated financial infrastructure.
Moving forward, the company is ready to incorporate ZILO’s transfer agency technology and Licuido’s issuance and collateralization services within its expanding ecosystem, moving its efforts to developing tokenized fund projects alongside partners such as Aviva Investors.
If it is adopted by asset management firms and financial institutions as well, XRPL has the potential to secure itself within the emerging tokenization space.
Also Read: Ripple and Aviva Launch Regulated Tokenized Fund on XRPL
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