Ripple and Axelar team up for tokenizing real-world assets and enhancing cross-chain communication on XRPL.

Ripple collaborates with Axelar Foundation to improve interoperability on the XRP Ledger and drive the tokenization of Real World Assets (RWAs).

Hassan Shittu Last updated: February 27, 2024 13:40 EST | 2 min read

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

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.

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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.” – David Schwartz

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.

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🎉 Q&A Time! 🎉

Q: How does the partnership between Ripple and Axelar benefit developers?
A: The partnership provides developers with access to Axelar’s General Message Passing protocol, allowing interaction with smart contracts across multiple blockchains. This enables them to leverage the reliability and stability of XRPL for the tokenization and exchange of assets.

Q: What are the advantages of integrating Axelar’s network with XRPL?
A: The integration enables secure and efficient asset transfers between over 55 interconnected blockchains. It also facilitates the deployment of decentralized applications on XRPL, offering developers new possibilities for creating innovative blockchain solutions.

Q: Can you explain the significance of tokenizing real-world assets?
A: Tokenizing real-world assets opens up exciting possibilities for the blockchain economy. It allows for the representation of traditional assets, such as real estate and commodities, as digital tokens on the blockchain. This leads to increased liquidity, fractionalization, and accessibility for investors.

Q: What role does Axelar play in the partnership?
A: Axelar brings its expertise in interoperability, enabling seamless communication between different blockchains. By integrating with the XRPL, Axelar will facilitate the tokenization of real-world assets, further driving adoption and expanding the use cases for blockchain technology.

Looking to the Future

The partnership between Ripple and Axelar is an important step in advancing the tokenization of real-world assets. As more assets are tokenized, the blockchain economy will continue to grow, with real estate, commodities, and treasuries leading the way. The integration of XRPL with Axelar’s protocol paves the path for seamless user experiences and secure transactions across interconnected blockchains.

With the increasing adoption of tokenized RWAs, the lending industry is likely to see collateralized loans backed by these assets becoming more prevalent. Additionally, the expansion of liquidity for stablecoins and high-value assets through XRPL’s native features will further strengthen the utility of the XRP Ledger in the crypto sector.

As the blockchain industry evolves, tokenization is expected to play a significant role in transforming traditional markets. Investment bank Citi forecasts that RWA tokenization could reach a staggering $4 trillion to $5 trillion by 2030. This growth will be driven by the tokenization of assets such as private equity, real estate, and debt markets.

It’s an exciting time for both Ripple and Axelar as they collaborate to unlock the full potential of the blockchain economy. The integration of their technologies will accelerate the tokenization of assets, revolutionize the financial landscape, and create new opportunities for investors and developers alike.

📚 Reference List: – Axelar Foundation’s tweet about partnership – Axelar’s ability to create seamless user experiences – Follow Us on Google News – Tokenization – Messari’s report on XRP Ledger activity volume – Ripple official website – Axelar official website

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