Ripple, a well-known cross-border payment service provider, posted on X today, August 3, 2026, and announced that the organization is going deeper into capital markets and is investing in ZILO and Licuido. The main aim behind this move is to build infrastructure around monetary assets on the XRP Ledger. This comes immediately after Aviva encrypted its US Dollar Liquidity Fund on the XRPL. This move also demonstrates how institutional interest is surging these days beyond basic experimentation.
The investments will reap benefits such as regulation, asset issuance, and collateral mobility into the market. The sole aim is to make tokenized gains diverse. They should be able to trade, settle, and balance within a safe framework.
Ripple Plans to Move Ahead of Tokenization
Tokenizing a conventional asset adds it to a blockchain. However, after tokenization, there are various issues that arise. Stakeholders do need mechanisms for record-keeping, issuance, distribution, balance, and liquidation. Ripple’s investments in ZILO and Licuido narrow the gap. Ripple will benefit through ZILO’s transfer agency and fund administration capabilities. It helps maintain records for managers and transfer agents as funds move forward.
On the other hand, Licuido provides facilities of issue, distribution, and trading of financial assets. It is used to provide better utility and viability, including shifting digital collateral through settlement. It is crucial as companies do not need to find another way to generate tokens. It needs to embed a workflow that helps the token to function within.
As mentioned in the press release, Ripple’s infrastructure needs issuance, accumulation, custody, collateral utility, and multi-currency funding, all together. Its RLUSD stablecoin acts as a mechanism for delivery versus payment transactions. On the other hand, tokenized funds can be used as collateral from the issuing point. The XRPL becomes more than a settlement layer. It can function as an environment where assets can be accumulated or transferred.
“Tokenization of assets is only the starting point: the real value lies in what can be done with a token, including buying, selling, and settling trades instantly, or using it as collateral to borrow, lend, or post margin,” said Nigel Khakoo, SVP, Trading and Markets at Ripple. “Our partnerships with Aviva Investors, Franklin Templeton and DBS demonstrate how asset managers are focused on deploying tokenized fund structures at scale. ZILO and Licuido provide core capabilities that are essential to further scaling this shift: regulated digital transfer agency infrastructure and liquidity for issuance and collateral mobility. This is just the beginning of the journey, and we see a substantial opportunity to bring huge efficiencies to the investment sector over the next decade.”
How Is Collateral Viability a Big Opportunity?
As mentioned above, Ripple does not rely only on encrypted funds but on what it can do when it is on-ledger. Conventional capital markets have large amounts of collateral that can remain idle because moving assets can be complex. As per the information, the process can make it portable with governed infrastructure to unveil its liquidity. This is where ZILO and Licuido step in.
ZILO’s transfer agency infrastructure can help with the records needed to sustain fund structures, while Licuido can help the assets navigate through distribution and bilateral markets. This blend could move a tokenized fund from simply existing to becoming an active mechanism that can be used, bought, sold, and balanced as collateral.
Ripple is also planning to sustain existing relationships with other financial firms. The company announced an alliance with Aviva Investors to encrypt a traditional fund on the XRPL. It also aims to facilitate partnerships with Franklin Templeton and DBS to deploy tokenized fund structures. The XRPL’s role is becoming more comprehensive day by day. Ripple mentioned the ledger offers better settlement, adaptability, safety, and regulation. It also avoids energy-intensive mining. Since the year 2012, XRPL has conducted 4 billion transactions, supporting more than 7 million active wallets. It is also regulated and maintained by 120 independent validators.
According to Ripple, the investments in ZILO and Licuido show that the upcoming phase of encryption may not be about putting more assets on the ledger, but it is about building a sort of infrastructure that allows these assets to flexibly move across the capital niche. Tokenization creates the digital asset, while supporting infrastructure allows transfer agency, issuance, settlement, and collateral utility. These are residing factors as to how and when an asset or gain becomes useful.
Ripple’s new investment will define how these assets will be used, not how they are created. By blending transfer powers, settlement, and viability on XRPL, the company facilitates blockchain as an operational layer. If the adoption covers the entire market, token use would become as important as token issuance.
