Coinspeaker Ripple Labs Extends Collaboration with UK’s Archax to Enhance RWA Adoption on XRPL
Ripple Labs, a top-tier multinational blockchain payment company based in the United States, has announced a collaboration extension with Archax, a digital asset exchange regulated by the United Kingdom’s Financial Conduct Authority (FCA). According to the announcement, the collaboration extension between Ripple and Archax will help onboard more institutional investors seeking to tokenize real-world assets (RWA) on the XRP Ledger (XRPL).
The collaboration is key to the mass adoption of XRP and XRPL in the coming years amid heightened competition in the blockchain space. Moreover, dozens of blockchains have emerged in the past few years, all offering almost similar services and focused on the same markets of tokenizing real-world assets.
“Ripple is excited to see Archax’s vision of driving the adoption of blockchain and digital assets technology amongst financial institutions come to life, while further underlining the credentials of the XRPL as one of the leading blockchains for RWA tokenization,” Markus Infanger, SVP at RippleX, noted.
Ripple and Archax on RWA Adoption
The partnership announcement was made during the XRP Ledger APEX 2024, which happened between June 11-13 in Amsterdam. The relationship between Archax and Ripple was cemented after the blockchain payment company established a partnership with Metaco in 2022 to offer digital asset custody services.
As Coinspeaker previously reported, Ripple acquired the Swiss-based web3 company, Metaco for $250 million. Ripple has used Metaco to extend its global reach, especially in the European market amid the implementation of the MiCA regulations.
Both companies will be working in onboarding institutions seeking to tokenize assets through regulated channels. Moreover, Ripple and Archax have succeeded in offering regulated web3 services in the past, especially to institutional investors.
“There is clear real-world utility in use cases like RWA tokenization for the operational efficiency, access to liquid markets, and transparency inherent to crypto, and Archax has already tokenized assets such as equities, debt instruments, and money market funds. Financial institutions are now understanding this and we are excited to play our part in helping them to embrace the technology by bringing their assets onto the XRPL,” Graham Rodford, CEO at Archax, noted.
Impact on XRP Price Action
Ripple has in the recent past accelerated the development of XRPL to improve XRP’s liquidity amid the ongoing crypto bull run. Despite the legal hurdles that Ripple is facing in the United States, the company remains optimistic about an amicable settlement that will free XRP holders.
Moreover, the US SEC has already made a settlement deal with Terraform Labs and Do Kwon of over $4.3 billion.
The notable XRPL developments, including an AMM and an EVM sidechain, have increased the chances of an XRP bullish breakout. The large-cap altcoin, with a fully diluted valuation of about $48 billion and a daily traded volume of around $1.2 billion, has hovered around 50 cents for the past few years, thus signaling imminent breakout soon.
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Ripple Labs Extends Collaboration with UK’s Archax to Enhance RWA Adoption on XRPL