Hundreds of Millions in RWAs to Power New Era of XRP Ledger, Says Ripple
A recent extension of the collaboration between Ripple and UK-based digital asset exchange Archax is expected to drive hundreds of millions of real-world assets (RWA) to XRP Ledger (XRPL). Both platforms appear to have the same compliance vision. They continue to engage regulators closely to swiftly integrate crypto into the financial system. The developer arm [...]
- A recent extension of the collaboration between Ripple and UK-based digital asset exchange Archax is expected to drive hundreds of millions of real-world assets (RWA) to XRP Ledger (XRPL).
- Both platforms appear to have the same compliance vision. They continue to engage regulators closely to swiftly integrate crypto into the financial system.
The developer arm of Ripple Labs, RippleX, has declared a new era for the XRP Ledger (XRPL) in a blog post detailing a new collaboration between Ripple and Archax. According to the post, the new era would witness hundreds of millions of dollars in tokenized real-world assets (RWAs) to the XRPL.
As we comprehensively reported on August 15, the partnership with Archax would unlock groundbreaking opportunities for developers and builders on the XRPL.
The enhanced collaboration between Ripple and Archax unlocks a plethora of opportunities for developers and builders on the XRPL. With financial institutions now able to tokenize their RWAs on the XRPL, the stage is set for a wave of innovative applications and services.
Important Features Positioning XRPL for Tokenization
According to the blog post, XRPL is battle-tested with evidence found in its 2.8 billion transactions processed (about $1 trillion of value moved). As captured by RippleX, the network, which has over 100 validators, supports over 5M active XRP wallet holders, underscoring its ability to handle large numbers of transactions instantly and cheaply.
Beyond this, XRPL is known for its built-in capabilities, including compliance tools, tokenization capabilities, and a native decentralized exchange, as well as its ability to handle institutional-grade financial use cases. In addition, there are upcoming features like “Automated Market Maker (AMM), Decentralized Identifier (DID), and Multi-Purpose Tokens (MPT).”
The blog post also mentions some benefits for users with successfully introducing tokenization to XRPL. These include access to diverse assets, increased liquidity, transparency, and security.
According to the blog post, one of the shared visions between Ripple and Archax is the compliance-first approach. This implies that they would continue working with regulators and policymakers to integrate crypto and blockchain into the financial system seamlessly.
An excerpt of the post reads:
The renewed collaboration between Ripple and Archax is set to transform the XRPL community, driving mainstream adoption of blockchain technology in financial markets. For builders, developers, and users, this collaboration opens up a world of possibilities, from creating cutting-edge financial instruments to accessing a diverse range of tokenized assets. As the XRPL continues to evolve, it stands at the forefront of real-world asset tokenization, paving the way for the future of finance.
Despite the advancement in the area of tokenization, some key metrics have been struggling woefully, with the number of transactions on the XRPL falling significantly from the first quarter to the second quarter of 2024 (Q1 to Q2 2024). As disclosed in Ripple’s Q2 2024 XRP Markets Report, transaction activities on the XRPL declined by 65.6% in Q2 2024. Specifically, 86.38 million was recorded against the 251.39 million recorded in Q1 of 2023.
Activity across most major protocols decreased in Q2. XRPL was no exception with on-chain activities noticeably lower in Q2 as compared to Q1.
At press time, XRP was trading at $0.56 after declining by 0.66% in the last 24 hours.
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