Ripple Bolsters Tokenized Collateral with Strategic Investments

Ripple has invested in two UK-based firms, Zilo and Licuido, to expand the use of tokenized assets as collateral on its XRP Ledger (XRPL) infrastructure.

The investments are aimed at eliminating idle capital in global capital markets by enabling tokenized funds to serve as collateral from issuance. Ripple estimates that $37.3 billion worth of tokenized real-world assets (RWAs) are currently held across all blockchain networks, with XRPL holding $368 million in tokenized RWAs.

Zilo provides transfer agency and fund administration technology for tokenized share classes, while Licuido focuses on issuing and distributing traditional financial assets in digital form. The company's SVP for trading and markets, Nigel Khakoo, stated that the two firms provide essential capabilities for scaling tokenized fund structures at an institutional level.