Ripple Partners with Axelar for RWA tokenization and cross-chain communication on XRPL
Ripple has partnered with the Axelar Foundation to enhance interoperability on the XRP Ledger (XRPL) blockchain, focusing on advancing the tokenization of real-world assets (RWAs).
This collaboration seeks to provide developers with new integration possibilities and expand the XRPL’s influence in financial services.
Expanding the utility of the XRP Ledger in the crypto sector
@Ripple and @Axl_Foundation are , supporting a pioneering step forward for XRP Ledger
— Axelar Network (@axelarnetwork) February 27, 2024
Through this collaboration, developers will gain access to Axelar’s General Message Passing (GMP) protocol, enabling them to interact with smart contracts across more than 55 blockchains. By leveraging XRPL’s decade-long reliability and stability, developers will have access to a trusted platform for tokenization and the efficient exchange of crypto-native and real-world assets.
Integrating Axelar’s network with XRPL will enable secure and efficient asset transfers across over 55 interconnected blockchains. This integration will facilitate the seamless deployment of decentralized applications (dApps) on the XRPL, Ripple’s public blockchain.
Key benefits of this partnership include the expansion of liquidity for stablecoins and high-value assets. For this, developers can use XRPL’s native features, including its decentralized exchange (DEX), upcoming automated market maker (AMM), and renowned payment system, known for its security and efficiency.
Also, Axelar’s cross-chain security approach, based on permissionless proof-of-stake validation, ensures secure transactions across interconnected blockchains. The XRPL will be integrated into Axelar’s secure cross-chain infrastructure through a multi-signature contract with 32 Axelar validators, further enhancing network security and resilience.
XRP Integration with Axelar Protocol Opens Doors for Real-World Asset Tokenization
Georgios Vlachos, co-founder of the Axelar protocol and director of the Axelar Foundation, expressed excitement about the XRPL integration, highlighting Axelar’s ability to create seamless user experiences across different consensus mechanisms.
David Schwartz, Ripple’s Chief Technology Officer and XRPL co-creator, emphasized the potential of tokenized RWAs in driving the blockchain economy forward. He anticipates increased adoption of tokenized RWAs for collateralized loans on traditional lending platforms.
“Real world asset tokenization will be the driving force of the blockchain economy with real estate, commodities and treasuries and bonds being the leading use cases.”
The XRP Ledger has existed for over a decade and has demonstrated steady growth in daily activity volume. According to a report by Messari, the network experienced an 8.8% increase in daily activity volume in 2023, driven by various transaction types, including a substantial rise in nonfungible tokens (NFTs) activity.
Axelar, a Canadian startup founded in 2020, offers an interoperability solution that enables seamless communication between blockchains without intermediaries. This integration aims to facilitate the tokenization of real-world assets, thereby broadening blockchain adoption.
Tokenization, the process of representing rights to an asset as digital tokens on a blockchain, is gaining momentum. Investment bank Citi projects that RWA tokenization could emerge as a significant use case in the crypto space, potentially reaching $4 trillion to $5 trillion by 2030.
This growth is expected to be driven by the tokenization of assets such as private equity, real estate, and debt markets, with private equity emerging as a particularly tokenized asset class due to its liquidity and fractionalization benefits.
The post Ripple Partners with Axelar for RWA tokenization and cross-chain communication on XRPL appeared first on Cryptonews.
