Ripple has moved to expand its existing partnership with Archax, the first registered crypto exchange and custodian in the United Kingdom.
The goal of this extension is to bring a significant amount of tokenized real-world assets (RWAs) to the XRP Ledger (XRPL) by next year. Specifically, Ripple and Archax are targeting in the range of hundreds of millions of dollars.
Ripple announced this latest development at the 2024 XRP Ledger Apex conference, where CEO Brad Garlinghouse and CTO David Schwartz were in attendance. According to the announcement, the move further establishes XRPL as a prominent network for RWA tokenization.
Ripple X Archax Extended to Promote XRPL for RWA Tokenization
Notably, the partnership between Ripple and Archax began in 2022. At the time, Archax collaborated with Metaco, a company later acquired by Ripple in 2023, to provide digital asset custody services to its clients.
Archax is renowned for partnering with top financial institutions to promote RWA tokenization. Under this renewed alliance, the UK-regulated firm will leverage the XRPL to tokenize assets for these institutions.
XRPL, a layer-1 public blockchain, boasts built-in capabilities such as tokenization, a native DEX, and compliance features. These characteristics make XRPL well-suited for powering institutional-grade financial use cases.
Ripple CEO Reacts
Ripple CEO Brad Garlinghouse expressed his enthusiasm for the expanded partnership. He stated that financial institutions are increasingly adopting L1 blockchains like XRPL to tokenize their RWAs through regulated entities like Archax. Garlinghouse anticipates this trend will grow exponentially in the future.
Very excited about this linkup with @Ripple and @ArchaxEx – financial institutions are increasingly tokenizing their RWAs on layer 1s like XRPL through regulated entities like Archax, and I only expect this to grow exponentially in the future. https://t.co/79K8INZrWH
— Brad Garlinghouse (@bgarlinghouse) June 13, 2024
Graham Rodford, CEO of Archax, believes that the industry has reached a tipping point for mainstream adoption of crypto in real-world use cases. He emphasized the utility of RWA tokenization by citing operational efficiency, liquid market access, and crypto’s inherent transparency.
Rodford disclosed that Archax has already tokenized assets such as debt instruments, equities, and money market funds.
Being the only FCA-regulated digital securities exchange, Archax holds a unique position to provide access to DeFi benefits via RWA tokenization. This is all underpinned by the capabilities and strength of the XRP Ledger.
At Ripple’s 2023 Swell conference, Rodford boldly predicted that the XRPL will process $50 trillion in tokenized value by 2025. However, prominent community figures have dismissed this projection.
RippleX, the development arm of Ripple, also formed a partnership with tokenization company Zoniqx to bring multi-asset tokenization to the XRPL. Last October, Schwartz projected that the XRPL will become the go-to platform for tokenization in the next one a half years.
Community Reacts
Ripple’s latest tokenization announcement has captured significant attention from XRP enthusiasts as its blockchain is the center of engagement.
“This will result in increased TVL for the XRPL—an important metric,” remarked XRP community pundit Moon Lambo.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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