Ripple Invests in ZILO and Licuido to Scale Tokenized Capital Markets on XRPL
The blockchain firm is integrating regulated transfer agency and collateral mobility tools to turn idle institutional assets into liquid capital.
Ripple has announced strategic investments in ZILO and Licuido to expand the digital capital markets infrastructure on the XRP Ledger (XRPL). The move integrates regulated asset issuance and collateral mobility into the ecosystem, allowing institutional investors to utilize tokenized funds more efficiently.
This new infrastructure leverages ZILO’s cloud-native digital transfer agency and fund administration technology for tokenized share classes. Complementing this is Licuido, an FCA-regulated platform that provides issuance, distribution, and collateral mobility for digital assets. Together, these tools enable tokenized assets to be used as collateral from the moment of issuance. The system utilizes the XRPL for fast, secure atomic settlement, with Ripple’s RLUSD stablecoin serving as the regulated cash leg for delivery-versus-payment (DvP) transactions.
The push for real-world utility
Traditional capital markets are frequently hampered by legacy infrastructure, which often results in slow settlement times and significant amounts of idle collateral. Ripple is positioning the XRPL as a modern alternative designed for institutional scale, focusing on "real-world utility." By enabling assets to be tokenized and immediately deployed for borrowing, lending, or posting margin, Ripple seeks to replace inefficient manual processes with automated, on-chain alternatives. This strategy builds on previous efforts, including a collaboration with Aviva Investors to tokenize traditional fund structures on the XRPL.
Implications for institutional finance
This investment signals a transition from simple asset tokenization toward a full-stack financial ecosystem. By integrating regulated agencies like ZILO and liquidity platforms like Licuido, Ripple is attempting to remove the operational friction and regulatory risks that have historically deterred large-scale institutional adoption of on-chain finance.
Nigel Khakoo, SVP of Trading and Markets at Ripple, noted that tokenization is merely a starting point, stating that the real value lies in the ability to settle trades instantly or use tokens as collateral. Brian Lynch, CEO and Co-Founder of Licuido, added that Ripple’s backing helps scale the collateral marketplace on the XRPL, assisting institutions in converting idle balance sheet assets into usable liquidity.
Future outlook
As Ripple continues to integrate regulated financial services into the XRPL, the industry will be watching for the volume of institutional assets migrating to the ledger. The success of this initiative depends on the broader adoption of RLUSD as a trusted settlement layer and the ability of these platforms to maintain regulatory compliance across different jurisdictions while scaling their collateral marketplaces.