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American blockchain payments firm Ripple Labs has announced its latest partnership with Aviva Investors. The goal of this collaboration is to advance real-world asset tokenization on the XRP Ledger (XRPL). As announced by Ripple's Managing Director, this deal marks the company’s first collaboration with a European investment management firm to tokenize RWAs at scale.
Ripple and Aviva: RWA catch
Essentially, the partnership will seek to leverage the speed, low cost and sustainability of the XRPL. Per the update, this is what Aviva Investors has been in search of in its push to champion the future of asset management.
Specifically, the duo will tokenize traditional fund structures, one of the key bedrocks of Aviva. For its part, Ripple will support the finance firm with technical know-how as a core contributor to XRP Ledger.
Tokenization of real-world assets is becoming a central theme in the broader digital currency ecosystem. While top asset managers like BlackRock and Franklin Templeton have launched structured funds on protocols like Ethereum, XRP Ledger is gradually catching up.
Ripple has repeatedly unveiled its broad tokenization plans with a goal to retain a significant market share in the next few years.
As part of the collaboration with Aviva, there might be more product releases this year in line with adherence to compliance.
Ripple expanding its influence
Ripple has been stepping up its market influence push over the past few months. The partnership with Aviva is just one of the many it has unveiled recently, with the Zand linkup the latest move unveiled.
Beyond its primary business, bordering on cross-border payments, Ripple’s push into tokenization was validated recently. As reported by U.Today, the company is looking at tokenizing U.S. Treasury Bills as a high-value RWA to be hosted on the XRPL.
One noticeable strategy for the Brad Garlinghouse-led company is that it is featuring RLUSD alongside most of these collaborations.
Earlier this month, Ripple Labs minted millions in RLUSD, its native stablecoin, pushing the token to a $1.5 billion valuation. This stablecoin marks its biggest validation of tokenization at work, a reality it is now spreading to traditional finance firms.
Dan Burgin
U.Today Editorial Team