Institutional traction to Axelar, the Ripple cross-chain partner, has escalated following the launch of the Canary AXL Trust.
Asset manager Canary Capital announced the launch of the Canary AXL Trust, an institution-grade fund tracking the performance of the Axelar native token AXL. The investment product will bridge the gap between traditional finance and digital innovation, simplifying exposure to the crypto asset.
Notably, the Axelar Trust is the first Canary investment product offering indirect exposure to the asset based on the blockchain interoperability category. This signals Axelar’s growing traction and the sector’s emergence into the limelight.
Meanwhile, Canary tapped Coinbase as the custodian for the Axelar Trust. The leading US-based exchange would safely store investors’ funds and facilitate transactional settlements for the trust.
Axelar’s Growing Adoption Attracts Institutions
The Wednesday launch follows the growing adoption of the Axelar interoperability solution. The cross-chain bridge provider offers interaction with over 80 unique chains in the cryptocurrency space.
Axelar’s technology gained mass adoption in the crypto space last year. Following strategic partnerships with high caliber blockchains, the solution fosters web3 connectivity between ecosystems like the XRP Ledger (XRPL), Sui, Stellar, TON, Bitcoin, and Hedera.
Meanwhile, the surging traction saw Axelar hit a total value locked (TVL) of $1 billion earlier this year. The blockchain also attracted institutional partnerships, including Deutsche Bank, Microsoft, and JP Morgan.
Ripple’s Partnership with Axelar for XRPL Interoperability
One of Axelar’s remarkable feats was its partnership with Ripple to provide interoperability services for the XRPL Ledger. Last year, the blockchain solution forged a collaboration with the payment giant to act as a bridge between the XRPL and the XRPL Ethereum Virtual Machine (EVM) sidechain.
Ripple is building the XRPL EVM sidechain in collaboration with Peersyst, leveraging the evmOS to ensure compatibility with other chains and complete customizability on the Cosmos SDK. Notably, introducing the sidechain will enhance XRPL’s opportunities in DeFi.
Meanwhile, Axelar is reportedly working with Ripple on the RLUSD interoperability with other chains. The launch of the stablecoin expanded the utility of the XRP Ledger, and the partnership aims to allow the stablecoin to function seamlessly in different chains.
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