Ripple and Archax have joined forces to tokenize real-world assets (RWAs) worth hundreds of millions of dollars on the XRP Ledger (XRPL) in the coming year. The XRPL is recognized for its reliability, efficiency, and comprehensive features, making it an ideal platform for RWA tokenization and institutional-grade decentralized finance (DeFi).
Real-world asset tokenization has been gaining momentum, prompting Ripple to forge ahead in this direction. This week, Ripple disclosed its partnership with Archax, a regulated digital asset firm authorized by the UK’s Financial Conduct Authority. The collaboration’s objective is to transfer significant amounts of tokenized RWAs to the XRPL, positioning it as a top blockchain for RWA tokenization. Ripple CEO Brad Garlinghouse expressed his enthusiasm for the partnership.
Archax, known for helping financial institutions tokenize their RWAs, has teamed up with Ripple to enable these institutions to leverage the XRPL for RWA tokenization, opening the door for various applications with these assets.
The agreement signifies a key development in the Ripple-Archax relationship, which began in 2022 when Archax partnered with Metaco to offer digital asset custody services. Ripple’s acquisition of Metaco in mid-2023 further solidified the collaboration.
The XRPL offers features like tokenization, a native decentralized exchange, and compliance tools, making it a robust platform for financial institutions. Markus Infanger, SVP of RippleX, highlighted the potential of blockchain technology to provide real utility in financial markets on a large scale. He praised Archax’s efforts to promote blockchain and digital assets technology among financial institutions, reinforcing the XRPL’s status as a leading blockchain for RWA tokenization.
Ripple and Archax are leveraging their shared compliance-first approach to advance the integration of crypto and blockchain technology into the global financial infrastructure. Archax is well-positioned to offer its clients the benefits of DeFi through RWA tokenization, supported by the capabilities of the XRPL.
The XRPL’s reliability and efficiency make it a strong foundation for RWA tokenization and institutional-grade DeFi. Key features include an Automated Market Maker (AMM) already live on the XRPL, as well as upcoming functionalities like Decentralized Identifiers (DID), Multi-Purpose Tokens (MPT), a Lending Protocol, and Oracles.
Having supported over 1,000 projects and processed more than 2.8 billion transactions since 2012 without any failures or security breaches, the XRPL boasts over 5 million active wallets and a network of over 120 validators.
Both Ripple and Archax actively engage with regulators and policymakers globally to maximize blockchain technology’s benefits for the financial system. This collaboration underscores the XRPL’s strength and potential in facilitating secure, efficient, and compliant RWA tokenization and DeFi solutions.