Breaking: Ripple & Archax Join Forces to Tokenize Real Assets Worth Millions

• Ripple and Archax expand partnership to tokenize hundreds of millions in real-world assets on the XRP Ledger.
• XRPL to host tokenized financial assets, enhancing blockchain utility for institutional-grade financial use cases.

Pioneer of business blockchain and cryptocurrency solutions, Ripple, has announced an expansion of its partnership with Archax, the first digital asset exchange, broker, and custodian in the UK licensed by the Financial Conduct Authority (FCA).

Over the next year, this collaboration is expected to deliver tokenized real-world assets (RWAs) valued at hundreds of millions of dollars onto the XRP Ledger (XRPL), making XRPL a top blockchain for RWA tokenization.

The development was greeted enthusiastically by crypto figures such as blockchain researcher Collin Brown, who stated, “This is a significant step towards mainstream adoption of blockchain in financial markets.”

Exciting news from the world of crypto! Ripple teams up with Archax to tokenize real-world assets, bringing hundreds of millions of dollars onto the #XRP Ledger. A significant step towards mainstream adoption of blockchain in financial markets. #Ripple pic.twitter.com/lbYckVX5hw

— Collin Brown (@CollinBrownXRP) June 13, 2024

Archax’s Role in Tokenization

Tokenizing financial RWAs, Archax works with top financial institutions. By this collaboration, these institutions can now select the XRPL for their tokenization requirements, creating a plethora of downstream prospects for these assets.

This development expands upon an alliance that started in 2022 when Archax and Metaco teamed up to provide custody services for digital assets. This partnership was strengthened when Ripple acquired Metaco around the middle of 2023, in line with what CNF previously disclosed.

Built-in tokenization capabilities, a native decentralized exchange, and compliance features tailored for institutional-grade financial use cases characterize the open-source, public, decentralized Layer 1 blockchain known as the XRPL.

As to Markus Infanger, SVP of RippleX, “Our industry is at the outset of the next significant adoption cycle in which blockchain technology will bring meaningful usefulness in financial markets at scale.

The idea of Archax promoting blockchain and digital assets among financial institutions excites Ripple, which confirms XRPL’s qualifications for RWA tokenization.

Commitment to Compliance

Sharing a compliance-first approach, Ripple and Archax aggressively collaborate with governments and regulators all around the world to include blockchain and cryptocurrency technologies in the global financial system.

Archax is ideally positioned to provide its clients the advantages of decentralized finance (DeFi) through RWA tokenization, all backed by the strong capabilities of the XRPL as the first and only FCA-regulated digital securities exchange, custodian and brokerage.

“We have hit the tipping point for mainstream adoption of digital assets for real-world use cases,” said Archax CEO Graham Rodford. Emphasizing the obvious benefits of RWA tokenization, Archax has already tokenized a number of assets, such as money market funds, debt instruments, and stocks.

As financial institutions start to understand the operational efficiency, market liquidity, and transparency that cryptocurrencies offer, Archax is thrilled to help them adopt this technology on the XRPL.

Advanced Features of the XRPL 

proven efficiency and dependability of the XRPL provide a solid basis for institutional-grade DeFi and RWA tokenization. Comprehensive capabilities of the platform include Oracles, a Decentralized Identifier (DID), Multi-Purpose Tokens (MPT) capacity, and an Automated Market Maker (AMM).

With over 120 validators, the XRPL has supported over 1,000 projects, handled over 2.8 billion transactions without any security flaws, and kept over 5 million active wallets.

Meanwhile, XRP is currently trading at around $0.4864, up 0.14% in the last 24 hours, according to CoinMarketCap. The token has, meanwhile, been trending bearish over the past seven days, falling by 7.44%.

Prior to now, Ripple improved the XRPL sidechain by integrating the Axelar Bridge. Through this action, XRPL hopes to further establish itself as a strong and adaptable blockchain that can accommodate a broad spectrum of uses and applications.