Ripple backs ZILO, Licuido as XRP Ledger demand hits $1 billion

Ripple invested in ZILO and Licuido to add regulated transfer agency and collateral mobility to XRP Ledger, as President Monica Long cited billion-dollar bank demand.

"The banking sector is shifting to blockchain, and we're seeing billion-dollar demand for the XRP Ledger," Monica Long, president at Ripple, said.

The investments build on existing partnerships between the companies. ZILO supplies transfer agency and fund administration technology used by Fidelity International and State Street, while Licuido — whose Markets Limited arm is an appointed representative of FCA-authorized Sapeno Partners LLP — handles token issuance, distribution and secondary trading. Ripple plans to use RLUSD as the cash leg for delivery-versus-payment settlements. XRPL supports about $4 billion in tokenized assets, more than seven million active wallets and is maintained by 120 independent validators, according to Ripple.

The deals follow Aviva Investors' launch of the first tokenized share class of its USD Liquidity Fund on XRPL on July 29, with Ripple also working with Franklin Templeton and DBS Bank. Licuido targets the roughly $10 trillion money market repo market, where tokenized fund units could serve as collateral.

Nigel Khakoo, senior vice president of Trading and Markets at Ripple, said tokenization 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," he said.

Phil Goffin, founder and CEO at ZILO, said the investment enables the firm to accelerate work on tokenized share classes "without adding operational risk." Brian Lynch, CEO and co-founder at Licuido, said Ripple's backing helps scale its collateral marketplace on XRPL, "helping institutions turn assets that have sat idle on their balance sheets into liquidity they can actually use."

XRP traded at $1.07, down 1.35 percent over 24 hours, as of 04:00 UTC, according to CoinGecko.

What's at stake

Ripple's investments aim to make tokenized assets usable beyond issuance — as collateral for lending, borrowing and margin posting. The company has not disclosed investment amounts or ownership stakes in either firm. ZILO said it is providing Ripple with a digital transfer agency solution, but neither company published a deployment date.

The next steps depend on technical integrations and client launches. Future disclosures will need to show which funds use the combined stack and whether RLUSD gains measurable settlement volume.

This article is for informational purposes only and does not constitute investment advice.