As a seasoned crypto investor with a keen interest in the XRP token and its underlying technology, the Ripple-Archax collaboration extension is an exciting development that I believe will significantly contribute to the mass adoption of XRP and the XRPL ledger. The partnership between these two reputable players in the blockchain industry underscores the growing demand for real-world asset (RWA) tokenization, especially amongst institutional investors.
Top American blockchain payment company, Ripple Labs, has revealed an expanded partnership with Archax, a UK-regulated digital asset exchange. This collaboration aims to facilitate the entry of more institutional investors into the tokenization of real-world assets on the XRP Ledger (XRPL).
The partnership is essential for the widespread use of XRP and XRPL in the upcoming years, as competition intensifies among blockchain platforms. Additionally, numerous other blockchains have arisen recently, providing similar functionalities and targeting the same markets for tokenizing real-world assets.
As a analyst at RippleX, I’m thrilled to witness Archax bringing their vision to reality, focusing on boosting the adoption of blockchain and digital assets technology among financial institutions. At the same time, this development underscores the XRPL as a top contender in the realm of Real-World Asset (RWA) tokenization.
Ripple and Archax on RWA Adoption
At XRP Ledger APEX 2024, which took place from June 11-13 in Amsterdam, I learned about an exciting new partnership. Ripple, the blockchain payment company I follow closely, announced its collaboration with Archax. This relationship was strengthened further after Ripple established a partnership with Metaco back in 2022 to provide digital asset custody services.
Previously reported by CoinSpeaker, Ripple has purchased Metaco, a Swiss web3 firm, for approximately $250 million. This acquisition is aimed at expanding Ripple’s influence, particularly in Europe, as it navigates through the MiCA regulatory framework.
As an analyst, I would put it this way: I note that both Ripple and Archax are set to collaborate with institutions aiming to tokenize assets via regulated pathways. Previously, these companies have been successful in providing regulated web3 services, particularly catering to institutional investors.
“Graham Rodford, CEO of Archax, emphasized the practical benefits of use cases like RWA tokenization in the real world, including enhanced operational efficiency, access to liquid markets, and increased transparency that are unique to crypto. Archax has already tokenized various assets such as equities, debt instruments, and money market funds on the XRPL. Financial institutions are beginning to recognize these advantages, and we’re thrilled to assist them in adapting to this technology by bringing their assets onto our platform.”
Impact on XRP Price Action
In the past few months, Ripple has been working at a faster pace to enhance XRPL (XRP Ledger) in order to boost XRP’s liquidity during the ongoing cryptocurrency market surge. Despite the legal challenges that Ripple is currently facing in the US, the company maintains a positive outlook, hoping for a resolution that will benefit XRP holders.
Additionally, the Securities and Exchange Commission (SEC) in the United States has reached a settlement agreement with Terraform Labs and Do Kwon worth approximately $4.3 billion.
Significant advancements in XRPL, such as the addition of an Automated Market Making (AMM) system and an Ethereum Virtual Machine (EVM) sidechain, have boosted the prospects of a bullish surge for XRP. With a market capitalization of approximately $48 billion and daily trading volume averaging $1.2 billion, this large-altcoin has remained stagnant around 50 cents for quite some time. This prolonged price level hints at an imminent bullish breakthrough in the near future.
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2024-06-13 16:39