Ripple has announced a strategic partnership with Archax, the U.K.'s regulated digital asset exchange, to enhance the functionality of its blockchain. The collaboration will focus on the tokenization of real-world assets (RWAs), with plans to bring significant capital to XRP Ledger (XRPL) over the next year.
Archax, which enables financial institutions to tokenize RWAs, will leverage XRPL's infrastructure to improve efficiency and market access for these assets. This initiative is expected to accelerate the adoption of digital assets on traditional financial markets.
Alex DovbnyaThe partnership was announced at an XRPL summit in Amsterdam.
XRP Ledger was selected for its reliability, operational efficiency and features tailored for institutional-grade decentralized finance. With over a decade of secure operations, processing billions of transactions and supporting millions of wallets, XRPL provides a complete platform for institutions adopting blockchain technology.
Why is RWA the future?
Real World Assets (RWA) is a term that refers to a market for "real world" assets that are issued in the form of tokens on the blockchain. With RWA, any asset - from real estate to government bonds - can be represented in the form of tokens that can be freely traded on cryptocurrency markets.
It looks like tokenization will soon cover all types of investment assets. Even traditional securities will be available for purchase in the form of tokens, without unnecessary bureaucracy or geographical restrictions.
Tomiwabold OlajideAccording to CoinGecko, the capitalization of all projects related to RWAs has grown more than 11 times since October 2023 and currently stands at $8.36 billion. Not surprisingly, interest in RWAs is growing: BCG predicts that the market for tokenized assets will grow to $16 trillion. However, the risks should not be forgotten: the less regulated, the higher the risks.
Tomiwabold Olajide
Arman Shirinyan