Ripple Bolsters Tokenization Infrastructure with Strategic Investments

Ripple has made two strategic investments to support tokenized asset workflows on its XRP Ledger (XRPL), in Zilo and Licuido. The company aims to improve regulated transfer agency, issuance, and collateral mobility on XRPL.

Zilo provides global transfer agency asset solutions for wealth managers and has raised $58.7 million in total equity funding. Licuido is a tokenization solutions provider based in the UK and regulated by the Financial Conduct Authority.

Ripple's investments aim to address the 'idle collateral' problem, where tokenized funds cannot be used as collateral from issuance. This could reduce inefficiencies in leveraged trading and structured financing.

The announcements follow recent XRPL-related developments, including Aviva Investors' launch of a tokenized share class of its US Dollar Liquidity Fund on XRPL.