Ripple invests in Zilo and Licuido to assist tokenized capital markets push

Ripple has made strategic investments in Zilo and Licuido to bolster its push for tokenized capital markets. The blockchain-focused fintech aims to allow tokenized funds to be used as collateral from the point of issuance. Ripple's investments in these companies will enable access to tokenized financial assets on its blockchain ledger, the XRPL.

Zilo, a UK-based firm, provides global transfer agency asset solutions for wealth managers. It has raised a total of $58.7 million in equity funding. Licuido, another UK-based provider of tokenization solutions, is regulated by the UK Financial Conduct Authority.

Ripple expects these investments to bring regulated transfer agency, issuance, and collateral mobility to its XRPL infrastructure. By combining these deals, Ripple hopes to address issues related to idle collateral, enabling tokenized funds to be used as collateral from the moment of issuance. This announcement follows the launch of a tokenized share class of the US Dollar Liquidity Fund on XRPL by Aviva Investors, a London-based asset manager, which received approval from the Central Bank of Ireland.

Ripple also recently launched Ripple Mint, a platform that provides institutions with new ways to access, mint, redeem, and manage its USD-pegged stablecoin, Ripple USD (RLUSD). The XRPL currently hosts 11th-largest blockchain network with $368 million in tokenized real-world assets. It trails only Ethereum, which leads with $17.1 billion in tokenized RWAs.

The total value of tokenized assets has increased by 1.5% to $37.3 billion, with the number of tokenized asset holders rising by 50% to 1.57 million over the past 30 days.