Ripple President Monica Long has signaled a major shift in institutional adoption of tokenized assets on the XRP Ledger, emphasizing that financial institutions are now moving beyond pilot projects to active production and utilization of real-world assets on blockchain networks.
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Long recently characterized the change as a “veritable light switch flip,” highlighting the transition from experimental bank pilots to the actual use of tokenized money market and liquidity funds. She pointed to visible adoption by financial institutions, underscoring that tokenization is progressing from limited issuance toward practical use in financial workflows.
Ripple has advanced its institutional strategy with new investments in ZILO and Licuido. ZILO brings regulated transfer-agency and fund administration capabilities to the table, while Licuido integrates technology for token issuance and the mobility of collateral—two critical functions to support regulated finance on blockchain platforms.
This infrastructure-focused approach goes beyond representing financial assets on a blockchain ledger. Ripple is building systems that support end-to-end asset lifecycles, covering issuance, compliant transfer, custody, settlement, and the efficient use of tokenized assets as collateral.
Ripple states that the XRP Ledger (XRPL) has processed over $1 trillion in value and has operated for more than 12 years. The XRPL supports creation, transfer, and exchange of digital assets and is designed with regulatory compliance in mind. Its consensus mechanism enables validators to agree on transaction order and outcomes within three to five seconds without relying on traditional mining.
Ripple describes the XRPL as a public blockchain tailored for the regulatory and compliance needs of institutional investors, supporting seamless transfer and active use of tokenized assets in real financial environments.
Aviva Investors brings tokenization into mainstream asset management
The streak of institutional adoption gained momentum when Aviva Investors, a traditional asset manager, joined Ripple to explore tokenization of conventional fund structures on the XRP Ledger. Launched in February, their partnership represents Aviva Investors’ first initiative involving blockchain-based fund tokenization and underlines a growing readiness to integrate on-chain solutions in traditional finance.
Ripple and Aviva Investors explained that transforming existing fund structures into tokenized form could drive significant efficiency for both investors and asset managers. Nigel Khakoo, Senior Vice President of Trading and Markets at Ripple, supported this argument by explaining that operational efficiencies could be realized industry-wide through tokenized fund structures.
Following regulatory approval from the Central Bank of Ireland, Aviva Investors has since issued a US Dollar Liquidity Fund on XRPL, representing a concrete milestone in real-world blockchain finance. Multiple share classes of the fund now exist, with some segments accounting for over $1 billion in assets. In a similar move, Archax previously provided access to a tokenized abrdn US dollar liquidity fund on XRPL, reinforcing the network’s role in pioneering institutional-grade tokenized assets.
End-to-end utility and 24/7 markets
Ripple is increasingly focused on enabling tokenized assets to move fluidly across financial markets, supporting activities such as trading, settlement, and collateralization. Khakoo noted that the key value emerges through utilization rather than mere token creation:
“The real value lies in what can be done with a token.”
The integration of end-to-end solutions distinguishes tokenization on the XRPL from simple digital representation. Assets can move through different stages of the financial system—whether being bought and sold, settled, or leveraged as collateral—without reverting to legacy infrastructure.
Licuido reported successful testing of money-market-fund tokens on the XRPL Devnet and is investigating how tokenized collateral can ensure greater settlement speed and liquidity for institutional clients.
With the growing importance of always-on capital markets, platforms are emerging to address investor demand for simple, direct access to both traditional and blockchain-based assets. Among these, 1stepSwap has gained attention as a solution that removes barriers between traditional finance and crypto. By allowing users to access real-world assets—such as shares of major U.S. companies or commodities like gold and silver—directly from their wallets, 1stepSwap lets investors diversify their portfolios and execute trades instantly at the best available price, all without intermediaries.
Ripple’s infrastructure vision and market trajectory
Ripple markets the XRPL as an institutional-grade network with reliable settlement, consistent transaction costs, and embedded compliance features. The company has also expanded XRPL’s offerings to include tokenized U.S. Treasuries and other real-world assets. For instance, with support from Ondo Finance, investors can mint and redeem tokenized U.S. Treasuries on the network at any time, using RLUSD.
These developments show that XRP Ledger aims to become a central hub for tokenized assets, connecting issuance, payment, and settlement solutions instead of treating these activities as isolated events. Strategic investments in providers like ZILO and Licuido help lay the groundwork for this ecosystem by building the technical and operational infrastructure required for regulated financial products.
Long’s metaphor of a “light switch” reflects an industry-wide move from experimentation to actual deployment. Yet, widespread institutional adoption will ultimately depend on transaction volumes, regulatory frameworks, and user demand.
As XRPL integrates more institutional partners and adds infrastructure for regulated assets, the network is increasingly positioned as the backbone for digital financial products, bridging both crypto-native innovation and traditional finance standards.
