XRPLApex 2024, Amsterdam—A major development for growth and progress in the field of enterprise blockchain and cryptocurrency, Ripple has announced a partnership with Archax, which is the first digital asset exchange broker and the custodian to be regulated by the Financial Conduct Authority in the United Kingdom.
This partnership was announced at the XRP Ledger APEX 2024 conference held in Amsterdam and will tokenize and bring hundreds of millions of dollars of real-world assets onto XRPL over the next year. This strategic partnership strengthens XRPL as the preferred blockchain for RWA tokenization.
Since Ripple and Archax partnered in 2022, both parties have been focused on letting leading financial institutions exchange traditional money into tokens. Through XRPL, these institutions have created digital tokens of RWAs, which opens up several other possibilities and offers several downstream implications.
The announcement came after Ripple acquired Metaco, associated with Archax, in 2022 to provide service custody of digital assets. This development points to the growing partnership between Ripple and Archax as they work towards enhancing blockchain applications in financial systems.
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In the most recent announcement, Markus Infanger, Senior Vice President of RippleX, stated the significance of their partnership with Archax. He noted that the blockchain industry is on the verge of entering a phase where it can provide meaningful solutions to the problems facing global financial markets. Therefore, RippleX looks forward to partnering with Archax and contributing to bringing blockchain technology and digital assets to financial institutions.
Archax has progressed in tokenization alongside other innovative assets such as stocks, bonds, and money market funds. As highlighted by Archax’s chief executive, Graham Rodford, traditional financial institutions have started acknowledging the tangible application of digital assets. He says there is increasing tolerance towards deploying virtual assets in real-life situations. With Archax being the only digital securities exchange licensed by the FCA, it is poised to offer DeFi a series of advantages through tokenizing Real World Assets (RWA). This is made possible by leveraging the prospect strength of XRPL.
The XRPL is among the most trusted and efficient open-source digital ledger technology and distributed ledger with public access worldwide. The DLT and distributed ledger form the first tier of layered architecture addressing more sophisticated financial requirements. Its remarkable features include Tokenization, integrated DEX, and compliance. Furthermore, over 1000 projects operate on the XRPL, and compared to other platforms, more than 2.8 billion transactions have been carried out on it since 2012 without a single violation of security. It also has significant coverage of more than 5 million active wallets and is spread across more than 120 validators.
In the future, the XRPL has plans to implement additional features in its platform, including an Automated Market Maker (AMM), Decentralized Identifiers (DID), Multi-Purpose Tokens (MPT), a Lending Protocol, and Oracles. These improvements are intended to increase the effectiveness of blockchain applications that use institutional-grade decentralized finance (DeFi).
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The enhanced cooperation between Ripple and Archax is not just a breakthrough in the blockchain sphere but also sets a new trend among companies that adapt cryptocurrency and blockchain to the financial market with strict compliance with the law.
