Ripple's XRP Ledger Enters 'Light Switch' Phase as Institutional Adoption Accelerates

Ripple's XRP Ledger is at an inflection point as institutional adoption accelerates, according to Ripple President Monica Long.

The shift from blockchain pilots to practical use of tokenized funds and other real-world assets on the XRP Ledger is a 'veritable light switch flip,' Long said in a recent post. Financial institutions are moving from simply testing the technology to actually using it.

Ripple's strategy goes beyond putting financial assets onchain, aiming to build infrastructure for issuance, transfer, custody, settlement, and use of tokenized assets as collateral. The company has invested in ZILO and Licuido, two companies focused on different parts of the infrastructure required to bring traditional financial products onto blockchain networks.

Licuido contributes technology focused on token issuance and collateral mobility, while ZILO adds regulated transfer-agency and fund-administration capabilities. This broader infrastructure is crucial for institutional investors, which require more than a blockchain ledger to operate regulated financial products. They need systems that can handle ownership records, compliance requirements, transactions, and the movement of collateral throughout an asset's lifecycle.