Overseas cryptocurrency media outlet CoinGape reported that Ripple has made strategic investments in ZILO and Licuido, companies specializing in digital capital market infrastructure (CMI), marking a significant expansion of its tokenization strategy built on the XRP Ledger (XRPL).

Strategic Investment Based on Existing Partnerships

According to CoinGape, this investment was made building upon Ripple's existing collaborative relationships with both companies. The core objective is to optimize the issuance, transfer, settlement, and collateralization methods of traditional financial assets for the tokenization market. However, specific terms such as the investment size have not been disclosed.

Ripple assessed that current capital markets still rely on legacy systems, leading to delayed settlements and inefficient collateral usage. Accordingly, through a framework designed for institutional investors, the company supports asset issuance and custody, collateral management, multi-currency investment, and atomic settlement. Notably, it utilizes RLUSD, a compliance-focused settlement asset, for Delivery-versus-Payment (DvP) transactions, which simultaneously exchange payment funds and assets.

"Tokenization Is Just the Beginning"

Nigel Kakou, Senior Vice President of Trading and Markets at Ripple, stated, "Asset tokenization is just the beginning. The true value of tokens lies in the ability to instantly buy, sell, and settle them, use them as collateral to borrow or lend, and deposit them as margin."

Kakou emphasized that global asset managers such as Aviva Investors, Franklin Templeton, and DBS are currently collaborating with Ripple, indicating growing institutional investor interest in the tokenization of investment products. He added that the core capabilities of ZILO and Licuido are essential for expanding compliant digital registrar services and capital market collateral mobility features.

ZILO to Expand Infrastructure Supporting Tokenized Funds

ZILO provides registry and fund management technology for asset managers, depository institutions, and transfer agents. Leveraging this investment from Ripple, the company plans to accelerate the development of infrastructure supporting tokenized fund share classes.

Phil Goffin, Founder and Chief Executive Officer (CEO) of ZILO, stated, "Ripple's investment allows us to more rapidly integrate the utility and efficiency of digital markets into our institutional platform."

Licuido to Expand On-Chain Collateral Market

Regulated by the UK's Financial Conduct Authority (FCA), Licuido is a platform that supports the issuance, distribution, and trading of digital assets. A key feature is its support for on-chain settlement, enabling traditional financial assets, such as fund shares, to be used as digital collateral.

Brian Lynch, Co-Founder and CEO of Licuido, expressed his anticipation, saying, "With Ripple's support, we can further expand our XRPL-based infrastructure and collateral markets. This will help institutions transform unused assets on their balance sheets into actually usable liquidity."

CoinGape also noted that earlier this year, Ripple collaborated with ZILO and Licuido, alongside Aviva Investors, on a project to tokenize traditional fund structures on the XRPL.

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