Ripple Expands XRPL Tokenization Stack as Institutions Move Onchain

Ripple is positioning itself as a provider of the complete digital asset stack for institutions, covering issuance, stablecoin trading, custody, and credit as tokenized assets move into production. The company has made strategic investments in Zilo and Licuido to expand fund tokenization and institutional liquidity infrastructure on the XRP Ledger (XRPL).

Ripple President Monica Long highlighted the industry shift from pilot projects to real-world usage. “In the last year, we’ve seen the veritable light switch flip – from bank pilots to production, from issuing tokenized assets like money market funds and liquidity funds to using them! Institutional capital markets are moving in one direction — onchain 24/7,” she said on X. Ripple’s goal is to enable institutions to leverage the entire lifecycle of a tokenized asset on the XRPL.

The company’s Mint platform, launched on July 23, provides a unified interface for financial institutions to mint, redeem, and manage Ripple USD (RLUSD), integrating stablecoin operations with fiat and blockchain settlement systems. Ripple’s tokenization platform also supports creating securities, stablecoins, fund units, bonds, and commodities, with features like compliance screening, transfer restrictions, audit trails, and freeze controls.

A partnership among DBS, Franklin Templeton, and Ripple demonstrates how tokenized assets can support continuous portfolio management. Eligible DBS clients can trade RLUSD for Franklin Templeton’s tokenized money market fund within minutes, retaining access to yield. DBS also plans to explore accepting these fund units as collateral for repurchase agreements or third-party lending.

Looking ahead, the proposed XRPL Lending Protocol would add standardized institutional lending to the network, keeping underwriting and compliance offchain while managing servicing, repayments, and defaults onchain for assets like treasuries, stablecoins, and private credit. Additionally, partnerships like Doppler Finance and Openeden aim to integrate tokenized Treasury products into the XRPL, offering regulated yield.

The Bank for International Settlements has recognized tokenization’s potential for faster payments and efficient intermediation, though it cautioned on stablecoin risks. Ripple’s next step depends on validator decisions regarding the proposed lending standards, which could enable protocol-level institutional borrowing on the XRPL.

Source: https://news.bitcoin.com/featured/ripple-pushes-full-xrpl-stack-as-tokenized-assets-expand/