Ripple is expanding its focus on institutional digital asset infrastructure as tokenized finance transitions from pilot projects to production environments. The push reflects a broader shift across global capital markets, where asset managers and banks are moving beyond proofs of concept toward live deployment of tokenized funds, collateral, and settlement rails. Ripple President Monica Long highlighted that financial institutions are increasingly adopting tokenized assets for real-world use cases alongside the company's announcement of strategic investments aimed at strengthening capital markets infrastructure on the XRP Ledger (XRPL).

Since 2012, the XRP Ledger has processed over 4 billion transactions and supports more than 7 million active wallets. Building on recent efforts to expand tokenization, custody, settlement, and liquidity services for institutional clients, Ripple stated that its investments in ZILO and Licuido will introduce regulated transfer agency technology, issuance capabilities, and collateral mobility to its blockchain ecosystem. Transfer agents serve a critical function in traditional fund administration by maintaining ownership records and ensuring regulatory compliance, and replicating that role onchain has become a key requirement for institutions seeking to issue tokenized share classes.

Ripple Expands Capital Markets Strategy on XRPL

The company announced strategic investments in ZILO and Licuido, two firms focused on digital asset infrastructure for institutional markets. These investments expand existing partnerships and are designed to support regulated issuance, transfer agency services, and collateral movement on the XRP Ledger.

According to Ripple, ZILO provides digital transfer agency and fund administration technology tailored for asset managers, custodians, and transfer agents. Meanwhile, Licuido offers a platform for issuing, distributing, and trading tokenized financial assets, enabling them to function as digital collateral through onchain settlement. Ripple's combined infrastructure supports token issuance, custody, collateral management, multi-currency investment capabilities, and atomic settlement, with RLUSD — Ripple's NYDFS-regulated U.S. dollar stablecoin — serving as the regulated cash asset for delivery-versus-payment (DvP) transactions. DvP is a cornerstone of traditional securities settlement, ensuring that asset transfers and cash payments occur simultaneously to eliminate settlement risk.

Highlighting the broader transition across institutional markets, Long stated on X: “In the last year, we’ve seen the veritable light switch flip – from bank pilots to production, from issuing tokenized assets like money market funds and liquidity funds to using them.”

"Institutional capital markets are moving in one direction — onchain 24/7," she added.

Focus on Tokenized Assets and Institutional Adoption

Ripple emphasized that institutions are seeking infrastructure that delivers faster settlement, enhanced collateral efficiency, and compliant record-keeping. The company noted that tokenized funds can be utilized as collateral immediately after issuance, with transactions settling atomically on the XRP Ledger.

Nigel Khakoo, Senior Vice President of Trading and Markets at Ripple, pointed out that modernizing financial markets requires more than just issuing digital assets.

"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," Khakoo said.

He added that Ripple's partnerships with Aviva Investors, Franklin Templeton, and DBS illustrate the growing institutional interest in deploying tokenized fund structures at scale. Franklin Templeton has been an early mover in blockchain-based fund administration, having tokenized money market fund products on multiple networks. Earlier in the year, Ripple announced a collaboration with Aviva Investors to tokenize traditional fund structures on the XRP Ledger, working in tandem with ZILO and Licuido on regulated issuance, custody, and distribution.

Partners Outline Plans for Digital Capital Markets

ZILO indicated that Ripple’s investment will bolster the development of transfer agency infrastructure specifically for tokenized fund shares. The firm stressed that asset managers require digital record-keeping systems capable of integrating with blockchain-based financial products without compromising regulatory standards.

"As fund structures move onchain, transfer agents and asset managers need infrastructure that can handle tokenized share classes without adding operational risk," said Phil Goffin, founder and chief executive officer of ZILO.

For its part, Licuido stated that its platform empowers institutions to leverage tokenized assets beyond simple issuance by facilitating distribution, settlement, and collateral usage within digital capital markets.

Brian Lynch, Chief Executive Officer and Co-Founder of Licuido, noted, "Tokenization, by itself, only solves part of the challenge of unlocking liquidity." He added that Ripple’s backing will be instrumental in expanding the company’s collateral marketplace directly on the XRP Ledger.