Ripple’s XRPL Axelar taps for RWA, cross-chain connectivity
Ripple has partnered with the Excel Foundation to increase interoperability on the XRP Ledger (XRPL) blockchain, targeting the next level of development for real-world assets (RWAs) tokens.
The partnership allows developers to make calls to smart contracts across more than 55 blockchains using Axelar's General Message Passing (GMP), facilitating the deployment of decentralized applications on XRPL – Ripple's open-source public blockchain.
Benefits of the merger include opening up liquidity for stablecoins and large-cap assets, according to the companies.
“Real-world asset tokenization will be the leading use cases of the blockchain economy, with real estate, commodities, and treasuries and bonds,” said David Schwartz, Ripple's chief technology officer and co-inventor of XRPL. Schwartz foresees traditional lending platforms using tokenized RWAs for collateralized loans.
XRPL has been around for over a decade. According to a recent report from Masari, the network In 2023, the volume of daily activity recorded a growth of 8.8%, which was driven by many types of transactions, including a growth of 73.7% in the activity of virtual tokens.
Axelar, on the other hand, is a Canadian-based startup that provides an overlay connection between blockchains, allowing networks to share data without an intermediary or centralized entity. The company was founded in 2020 by Algorand and members of the inaugural group of MIT graduates.
“The integration of Acceler will help expand blockchain adoption by facilitating RWA,” Schwartz believes.
Tokenization is the process of converting rights to assets into digital tokens on the blockchain. These tokens can represent things like real estate, art, or shares in a company, making them easy to buy, sell, and trade.
The investment bank Citi predicts that the RWA tokenization could be the next “killer use case” in crypto, a market estimated to reach between $4 trillion and $5 trillion in 2030. This growth is expected to be driven mainly by the tokenization of private equity, real estate. and debt markets, private equity can be a highly valued asset class due to its favorable characteristics for liquidity and dividend yield.
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