Ripple has expanded its digital capital markets strategy. The company announced today investments in Zilo and Lucuido – two firms that are focused on developing infrastructure for tokenized funds and institutional asset trading.

The move builds on existing partnerships with both firms. Ripple did not disclose the size of either investment.

Speaking on the matter was Nigel Khakoo, SVP, Trading and Markets at Ripple, who said:

“… ZILO and Licuido provide core capabilities that are essential to further scaling this shift: regulated digital transfer agency infrastructure and liquidity for issuance and collateral mobility. This is just the beginning of the journey, and we see a substantial opportunity to bring huge efficiencies to the investment sector over the next decade.”

ZILO provides transfer agency and fund administration technology. Its systems give asset managers and custodians regulated digital records for tokenized share classes. Licuido, on the other hand, operates an FCA-regulated platform that supports the issuance, distribution, trading, and use of traditional assets as digital collateral.

Ripple plans to integrate these capabilities with its infrastructure on the XRP Ledger. The company wants institutions to issue tokenized assets, hold them in custody, move them between investors, and use them as collateral without relying on legacy systems.

Naturally, RLUSD will serve as the regulated cash component for delivery-versus-payment transactions. This structure is designed to allow the asset and payment sides of a trade to settle together on XRPL.

The investments also support Ripple’s recent push to build a broader institutional platform around tokenization, payments, stablecoins, and trading. Last month, the firm launched Ripple Mint and made an investment in compliance provider Notabene. This strengthens the infrastructure that’s available to institutions using RLUSD.

It’s also noteworthy that the company has worked with Aviva Investors, Franklin Templeton, and DBS on tokenized fund and collateral projects. Ripple said that ZILO and Licuido will help turn those individual partnerships into infrastructure that asset managers can use at scale.

Source: CryptoPotato