Ripple invests in Zilo and Licuido to expand XRPL tokenization

Ripple announced on Monday that it has made strategic investments in UK-based Zilo and Licuido to broaden access to tokenized financial assets on the XRP Ledger. Financial terms for the deals were not disclosed.

Zilo provides global transfer agency and asset servicing solutions for wealth managers. Data compiled by Traxcn shows Zilo has raised about $58.7 million in equity funding. Licuido is a UK tokenization provider regulated by the Financial Conduct Authority.

Ripple described the partnerships as a means to connect regulated issuance and transfer agency services with on-ledger collateral mechanics. The firms are expected to enable tokenized funds to be used as collateral from the point of issuance, which Ripple says could reduce off-ledger idle collateral and improve capital efficiency for tokenized funds.

The announcement follows recent activity on XRPL. A week earlier, Aviva Investors launched a tokenized share class of its US Dollar Liquidity Fund on the ledger after approval from the Central Bank of Ireland. Last month Ripple introduced Ripple Mint, a platform for institutions to access, mint, redeem and manage its US dollar-pegged stablecoin, Ripple USD (RLUSD). Ripple expects Zilo and Licuido to work alongside those developments.

On-chain data shows XRPL ranks 11th by tokenized real-world assets, holding about $368 million in tokenized RWAs. Ethereum leads with roughly $17.1 billion. The total value of tokenized assets rose 1.5% to $37.3 billion, and the number of RWA holders increased 50% to 1.57 million over the past 30 days, according to RWA.xyz.

The announcement did not provide timelines for product integrations or commercial partnerships between Ripple, Zilo and Licuido. Ripple also did not specify how the firms will interoperate on XRPL or whether regulatory approvals beyond Licuido’s existing FCA oversight will be sought in other jurisdictions.