Ripple, a leading blockchain payment firm has extended its existing collaboration with Archax, a regulated digital asset exchange, broker, and custodian. The firm made the disclosure on Thursday via an official blog post.
In the announcement, Ripple disclosed that its extended partnership with Archax will help bring “hundreds of millions of dollars of tokenized real-world assets (RWAs) onto the XRP Ledger (XRPL).” By that, the firm is confident that the XRPL will become one of the leading blockchains for RWA tokenization.
More so, Ripple described how Archax works with numerous prominent financial institutions to allow them to tokenize their financial RWAs. With the aid of the extended collaboration, financial institutions will be able to select the XRPL to tokenize their RWAs. Such development according to Ripple will help create opportunities for numerous downstream use cases for these assets.
Recall that the history of Ripple and Archax collaboration can be traced back to 2022 after the latter collaborated with Metaco to offer digital asset custody services to its clients. However, Ripple went on to acquire Metaco in mid-2023 resulting in a collaboration between the two.
How Top Executives of Ripple and Archax Reacted to the Partnership
The SVP of RippleX, Markus Infanger reacted to the partnership. The executive described how the blockchain sector is at the “start of the next major adoption stage.” The stage according to Markus Infanger will see blockchain technology deliver real utility in financial markets at scale.
Further, the executive added that the firm is happy to see Archax contributing massively to the adoption of blockchain and virtual assets by financial institutions. He established that the latest development underlines the credentials of the XRPL as one of the leading blockchains for RWA tokenization.
Similarly, the CEO of Archax, Graham Rodford also reacted to the partnership. The CEO described the extended partnership with Ripple as “hitting the tipping point for mainstream adoption of digital assets for real world use cases.” Additionally, the CEO established that there is clear real-world utility in use cases like RWA tokenization for operational efficiency.
Graham Rodford went on to discuss how tokenized assets can offer access to liquid markets and transparency inherent to crypto. He revealed that the firm has already tokenized assets like equities, debt instruments, and money market funds. Lastly, he added that financial institutions are now understanding the relevance of tokenized assets. Graham Rodford disclosed that Archax is excited about how it has helped bring tokenized assets to the XRPL.
Read More: