Ripple invests in Zilo and Licuido for tokenized collateral on XRPL
In brief
- Ripple invested in Zilo, a UK transfer agency provider that raised $58.7 million in equity funding
- Licuido, an FCA-regulated tokenization platform, also received Ripple investment
- Investments enable tokenized funds to serve as collateral from issuance on XRPL
Strategic Infrastructure Play
Ripple made strategic investments in Zilo and Licuido, though financial details were not disclosed. Zilo provides global transfer agency asset solutions for wealth managers and has raised $58.7 million in total equity funding. The firm is based in the UK.
Licuido is a tokenization solutions provider regulated by the UK Financial Conduct Authority and also based in the UK. Together, these investments target a core friction in tokenized finance: the ability to mobilize collateral across issuance and settlement.
Collateral Efficiency and Market Growth
The investments aim to solve a real problem. Tokenized assets often sit idle because they can't easily transition into collateral roles. By combining Zilo's transfer agency capabilities with Licuido's tokenization infrastructure, Ripple wants to enable tokenized funds to work as collateral from the moment they're issued—removing a layer of friction that's slowed institutional adoption.
XRPL is already seeing traction in this space. XRPL is the 11th-largest blockchain network with $368 million in tokenized real-world assets, though Ethereum leads with $17.1 billion in tokenized real-world assets. The broader market is accelerating—total RWA holders increased by 50% to 1.57 million during the past 30 days, and the total value of tokenized assets rose by 1.5% to $37.3 billion.
Ripple's recent moves underscore its commitment to institutional tokenization. The company launched Ripple Mint, a platform for institutions to access, mint, redeem and manage its US dollar-pegged stablecoin, Ripple USD (RLUSD). Aviva Investors also launched a tokenized share class of its US Dollar Liquidity Fund on XRPL after receiving approval from the Central Bank of Ireland, signaling how regulated asset managers are beginning to build on the network.
