Ripple is continuing its strategy to expand tokenization capabilities on the XRP Ledger through strategic investments in two digital capital markets infrastructure companies: ZILO and Licuido. These investments are designed to enhance the issuance, transfer, settlement, and collateralization of traditional financial assets in tokenized markets.
Ripple aims to address the inefficiencies of legacy systems in current capital markets, which often lead to delayed settlements and restricted collateral utilization. The company believes that tokenization is a foundational step, with the true value lying in the ability to instantly buy, sell, settle trades, or use tokens as collateral for borrowing, lending, or posting margin.
ZILO, a specialist in transfer agency and fund administration technology for asset managers, custodians, and transfer agents, will use Ripple's investment to advance its infrastructure for tokenized fund share classes. ZILO's CEO, Phil Goffin, stated that Ripple's investment will accelerate the integration of digital market utility and efficiency into their platform.
Licuido, an FCA-regulated platform focused on token issuance, distribution, and trading of digital assets, will leverage Ripple's backing to scale its infrastructure and collateral marketplace on the XRP Ledger. This will enable institutions to convert idle assets into usable liquidity. Licuido CEO Brian Lynch highlighted the potential for institutions to turn balance sheet assets into liquidity.
These investments follow a prior collaboration between Ripple, Aviva Investors, ZILO, and Licuido to tokenize traditional fund structures on the XRP Ledger, reflecting growing institutional interest in tokenized investment products.