Ripple Partners with Archax to Expand RWA Tokenization on XRP Ledger

• Ripple and Archax expand partnership to bring tokenized RWAs to the XRP Ledger.
• Archax enables financial institutions to tokenize RWAs on XRPL.
• The partnership aims to enhance market liquidity, efficiency, and transparency.

Ripple, a leading enterprise blockchain and crypto solutions provider, has announced an expansion of its partnership with Archax, the UK’s first Financial Conduct Authority-regulated digital asset exchange. This collaboration aims to bring hundreds of millions of dollars in tokenized real-world assets (RWAs) to the XRP Ledger (XRPL) over the next year, solidifying XRPL as a premier blockchain for RWA tokenization.

Archax, which partners with leading financial institutions, will now enable these institutions to tokenize their financial RWAs on the XRPL. This will create numerous downstream opportunities for these assets, enhancing operational efficiency, market liquidity, and transparency inherent to crypto technology. Markus Infanger, SVP of RippleX, said, 

Our industry is at the start of the next major adoption stage in which blockchain technology will deliver real utility in financial markets at scale.

The partnership between Ripple and Archax initially focused on offering digital asset custody services through Archax’s collaboration with Metaco, which Ripple acquired in mid-2023. Now, with this expanded collaboration, the XRPL’s built-in capabilities such as tokenization, a native decentralized exchange, and compliance features, will power institutional-grade financial use cases. Archax CEO Graham Rodford stated, 

There is clear real-world utility in use cases like RWA tokenization for the operational efficiency, access to liquid markets, and transparency inherent to crypto.

Ripple has consistently demonstrated a strong commitment to advancing the XRPL ecosystem, as evidenced by previous initiatives such as the launch of the XRPL Japan and Korea Fund. This fund, aimed at fostering innovation on the XRP Ledger in Japan and Korea, shows Ripple’s strategic focus on expanding the XRPL’s global footprint. 

Moreover, the increase in development activity on the XRPL, highlighted by recent data from Santiment, reflects Ripple’s dedication to enhancing the ledger’s infrastructure. The development activity rebounded from a decline observed on April 13, indicating increased efforts to maintain and advance the XRPL.