Ripple Labs has taken significant steps to broaden the use of tokenized financial assets on the XRP Ledger by investing in two specialized firms, ZILO and Licuido. This move aims to enhance how financial institutions handle digital fund shares, an area gaining traction as tokenization grows within traditional finance.
ZILO focuses on streamlining the issuance and management of tokenized share classes for institutional clients. Its founder, Phil Goffin, highlighted that many asset managers are transitioning their fund structures on-chain, requiring smooth integration with existing systems. The new funding from Ripple Labs will accelerate ZILO’s efforts to meet this demand.
Licuido's Role in Tokenized Asset Management
Meanwhile, Licuido is developing platforms that facilitate issuance, distribution, and movement of tokenized financial assets, alongside enabling their use as digital collateral through on-chain settlements. CEO Brian Lynch emphasized that simply tokenizing assets is not enough; institutions need practical ways to use them. Ripple’s investment is set to expand Licuido’s infrastructure and collateral marketplace on the XRP Ledger, reinforcing Ripple’s broader ecosystem.
This latest development follows Ripple's prior partnership with Aviva Investors to create tokenized fund structures. Ripple supports token standard development while ZILO and Licuido build the surrounding ecosystem including custody, issuance, and settlement services. The XRP Ledger’s reputation for fast settlement times, low fees, and regulatory compliance remains a strong draw for these innovations.
Interestingly, the XRP token has recently reached its most oversold monthly level in over a decade, signaling a potential inflection point for market interest. Ripple’s strategic investments arrive amid renewed discussions about XRP’s role in cross-border payments and tokenized finance solutions.
This content is for informational purposes and does not constitute financial advice.
