Ripple Makes Strategic Investments in Zilo and Licuido to Advance Tokenized Capital Markets
In a move to facilitate tokenized funds serving as collateral starting at the issuance stage, Ripple has strategically invested in both Zilo and Licuido.
The blockchain-focused fintech company Ripple has revealed two fresh strategic investments as part of its ongoing effort to broaden access to tokenized financial assets through its blockchain ledger infrastructure.
According to an announcement made on Monday, the company has invested strategically in Zilo, a provider of global transfer agency asset solutions catering to wealth managers, as well as in Licuido, a provider of tokenization solutions that operates under regulation from the UK Financial Conduct Authority.
The companies did not disclose specific financial terms regarding the investments. Data compiled by Traxcn indicates that Zilo, which is headquartered in the UK, has accumulated $58.7 million in total equity funding to date. Licuido maintains its base of operations in the UK as well.
According to Ripple, these strategic deals are anticipated to introduce regulated transfer agency services, issuance capabilities, and collateral mobility features to its XRP Ledger (XRPL) infrastructure.
The combined impact of these investments is designed to assist Ripple in tackling challenges associated with idle collateral by facilitating the use of tokenized funds as collateral right from the moment of issuance. This announcement followed just one week after Aviva Investors, an asset manager based in London, introduced a tokenized share class of its US Dollar Liquidity Fund on XRPL, following regulatory approval from the Central Bank of Ireland.
In the previous month, Ripple introduced Ripple Mint, a specialized platform that provides institutions with innovative methods to access, mint, redeem and manage its stablecoin pegged to the US dollar, known as Ripple USD (RLUSD).
XRPL currently holds the position as the 11th-largest blockchain network, hosting $368 million in tokenized real-world assets (RWAs). Ethereum maintains its leading position with $17.1 billion in tokenized RWAs, based on data from RWA.xyz.
The total number of RWA holders grew by 50% to reach 1.57 million over the past 30 days, while the aggregate value of tokenized assets experienced a 1.5% increase to $37.3 billion.