Ripple, the enterprise blockchain and crypto solution provider, has extended its collaboration with Archax, the Financial Conduct Authority-regulated digital asset exchange, broker and custodian, in a move hoping to bring hundreds of millions of dollars of tokenised real-world assets (RWAs) onto the XRP Ledger (XRPL) over the coming year.
Ripple is working with Archax to enable financial institutions to select the XRPL to tokenise their RWAs, creating opportunities for numerous downstream use cases for these assets. The partnership ultimately aims to establish XRPL as one of the leading blockchains for RWA tokenisation.
The relationship between the two organisations was originally established in 2022 when Archax collaborated with Metaco to offer digital asset custody services to its clients. In mid-2023, Metaco was acquired by Ripple, bringing the two organisations together.
“Our industry is at the start of the next major adoption stage in which blockchain technology will deliver real utility in financial markets at scale,” explained Markus Infanger, SVP at RippleX. “Ripple is excited to see Archax’s vision of driving the adoption of blockchain and digital assets technology amongst financial institutions come to life, while further underlining the credentials of the XRPL as one of the leading blockchains for RWA tokenisation.”
The XRPL is an open-source public decentralised Layer 1 blockchain, with built-in capabilities including tokenisation, a native decentralised exchange, and compliance features.
Ensuring global compliance
Both Ripple and Archax work proactively with regulators and policymakers worldwide to bring the benefits of crypto and blockchain technology to the world’s global financial infrastructure.
As the only FCA-regulated digital securities exchange, custodian and brokerage, Archax is well-positioned to provide its clients with the means to derive the benefits of DeFi through RWA tokenisation, underpinned by the XRPL’s capabilities.
“We have hit the tipping point for mainstream adoption of digital assets for real-world use cases,” added Graham Rodford, CEO of Archax. “There is clear real-world utility in use cases like RWA tokenisation for the operational efficiency, access to liquid markets and transparency inherent to crypto, and Archax has already tokenised assets such as equities, debt instruments and money market funds. Financial institutions are now understanding this and we are excited to play our part in helping them to embrace the technology by bringing their assets onto the XRPL.”
Throughout the last decade, the XRPL has been the home of over 1,000 projects, processing over 2.8 billion transactions without failure or security breach since 2012 and supporting over five million active wallets with a network of over 120 validators.
