Ripple's Response to Banking Sector's Blockchain Shift

Ripple President Monica Long has explained why her company has invested in new platforms ZILO and Licuido. According to her, it's a response to the banking sector's shift towards blockchain technology.

Long claims that traditional financial institutions have reached a 'light switch flip' moment, moving from isolated tests to actual issuance of tokenized funds. In the past year alone, bank pilots have turned into production, with the issuing of tokenized assets like money market and liquidity funds becoming common practice.

The integration of solutions for regulated transfer agents and collateral management has become Ripple's response to this institutional demand. This has already created a $3.97 billion on-chain base on the XRPL, according to RWA.xyz.

Long emphasized that Ripple's goal is to provide a full digital asset lifecycle on its network, with stablecoins like Ripple USD (RLUSD) forming the underlying liquidity foundation. The infrastructure deal addresses the market's technical needs, following the launch of a dollar liquidity fund by Aviva Investors on the XRPL.