Ripple deepens capital markets bet with ZILO, Licuido investments

Ripple has invested in ZILO and Licuido as it expands infrastructure for tokenized capital markets, adding regulated transfer agency, asset issuance and collateral mobility capabilities to the XRP Ledger ecosystem, according to a Monday press release.

The company said the investments would deepen existing partnerships and strengthen its institutional tokenization platform, which combines issuance, custody, collateral utility, multi-currency investment and atomic settlement.

Ripple’s RLUSD stablecoin will serve as the settlement asset for delivery-versus-payment transactions, enabling tokenized funds to function as collateral immediately after issuance.

“Tokenization of assets is only the starting point: the real value lies in what can be done with a token, including buying, selling, and settling trades instantly, or using it as collateral to borrow, lend, or post margin,” Nigel Khakoo, Ripple’s SVP of Trading and Markets, said in a statement.

Ripple said current capital market infrastructure leaves collateral underutilized, slows settlement and limits liquidity, while tokenization combined with regulated transfer agency and collateral infrastructure can improve capital efficiency. The investments follow Ripple’s previously announced tokenization partnerships with Aviva Investors, Franklin Templeton and DBS.

ZILO develops transfer agency and fund administration technology that supports tokenized fund share classes and regulated record-keeping for institutional investors, while Licuido operates an FCA-regulated tokenization and trading platform that manages the issuance, distribution and movement of digital financial assets as collateral across onchain markets.

Ripple said the investments support its ongoing effort to bring traditional financial assets onto the XRP Ledger, which has processed over four billion transactions with more than seven million active wallets.