Ripple has expanded its institutional blockchain strategy with strategic investments in UK-based transfer agency technology provider ZILO and FCA-regulated tokenization platform Licuido. While financial terms were not disclosed, the investments are set to add regulated transfer agency, digital asset issuance, and collateral mobility capabilities to the XRP Ledger (XRPL), reinforcing Ripple's infrastructure for tokenized financial assets.

Transfer agencies form a critical but often overlooked layer of fund infrastructure, maintaining shareholder records, processing subscriptions and redemptions, and handling regulatory compliance. By integrating tokenization at this layer, Ripple aims to allow fund managers to issue blockchain-based share classes without disrupting existing investor servicing workflows.

The move builds on Ripple's existing partnerships with both firms and aligns with its broader strategy to modernize traditional capital markets through blockchain technology. According to the company, global financial markets still rely on outdated systems that create settlement delays, leave collateral underutilized, and restrict liquidity. Delivery-versus-payment, the settlement mechanism Ripple's RLUSD stablecoin is designed to support, has long been a standard in traditional finance, ensuring that asset transfers and cash payments occur simultaneously to reduce counterparty risk.

Ripple's institutional platform is designed to address these inefficiencies by combining token issuance, custody, collateral management, multi-currency investment, and atomic settlement on the XRPL. The company's RLUSD stablecoin serves as the regulated cash leg for delivery-versus-payment transactions.

Source: Ripple's X Post

Ripple Expands Institutional Tokenization Infrastructure

Nigel Khakoo, Senior Vice President of Trading and Markets at Ripple, described tokenization as entering a new phase where value is generated through the trading, settling, financing, and use of digital assets as collateral rather than simply placing those assets on the blockchain. According to Khakoo, ZILO and Licuido provide the foundational components institutions need to adopt tokenized fund structures at scale.

ZILO delivers technology solutions for transfer agency and fund administration, including the tokenization of shares, without disrupting regulatory shareholder records. Licuido, also an FCA-regulated platform, complements these capabilities by enabling the issuance, distribution, trading, and use of traditional financial assets as digital collateral through on-chain atomic settlement. The involvement of FCA-regulated entities is notable given the UK's increasingly active role in establishing frameworks for digital asset markets, with the financial regulator operating a crypto firm registration regime and the government advancing legislation for stablecoins and tokenized securities.

Built on Ripple's Growing Institutional Partnerships

The latest investments further strengthen Ripple's relationships with major financial institutions. In recent months, the company partnered with Aviva Investors to tokenize traditional funds on the XRPL, making Aviva the first investment management company in Europe to do so. This followed approval from the Central Bank of Ireland for Aviva to issue a tokenized share class of its U.S. Dollar Liquidity Fund on the XRPL.

The Aviva partnership places Ripple in a competitive landscape where major financial institutions are already pursuing tokenization. BlackRock launched its BUIDL tokenized fund on Ethereum in 2024, and Franklin Templeton has expanded tokenized money market fund offerings across multiple blockchains, signaling growing institutional demand for on-chain fund structures.

Ripple has also introduced Ripple Mint, a platform that allows institutions to create, redeem, and manage the RLUSD stablecoin. Together, these initiatives reflect Ripple's focus on building regulated infrastructure for digital capital markets rather than concentrating solely on asset tokenization.

Ripple's X Post on Aviva Partnership

What Happens Next

The market for tokenized real-world assets (RWAs) continues to expand. According to data from RWA.xyz, nearly $37.3 billion worth of tokenized assets have been issued, with approximately 1.57 million holders globally.

Ethereum currently remains the dominant blockchain for RWAs, while Ripple continues to position the XRPL toward institutional adoption through regulated financial infrastructure. The company plans to integrate ZILO's transfer agency technology and Licuido's issuance and collateralization services into its growing ecosystem, advancing tokenized fund projects alongside partners such as Aviva Investors.

If adopted by asset management firms and financial institutions, the XRPL has the potential to establish itself within the emerging tokenization landscape.