Ripple Bolsters XRP Ledger with Strategic Investments

Ripple has invested in ZILO and Licuido to expand its XRP Ledger infrastructure. ZILO builds software that keeps track of who owns which shares in a fund, providing a record that institutions can trust. This is crucial for banks and asset managers, as they will not lend against or accept fund collateral unless the ownership register is accurate.

ZILO already worked with Ripple on its flagship fund launch, and State Street and Fidelity International run on the platform as well. The company's founder, Goffin, said that asset managers need infrastructure to handle tokenized share classes without adding operational risk, which Ripple's investment will help speed up.

Licuido is a regulated trading platform that lets institutions pledge fund shares as collateral instead of selling them, reducing the impact of market crashes and margin calls. The company aims to target over $10 trillion in money market fund liquidity with this model.

Ripple has built its flagship fund on the XRP Ledger with ZILO and Licuido's help, which includes a tokenized share class of Aviva Investors' US Dollar Liquidity Fund. However, neither investment creates demand for XRP, as fund trades settle in RLUSD stablecoin, not XRP.