Ripple backs ZILO & Licuido in tokenised funds push

Ripple has made strategic investments in ZILO and Licuido, extending its push into digital capital markets infrastructure.

Both companies already work with Ripple, and the new investments add transfer agency, issuance and collateral mobility functions to infrastructure built on the XRP Ledger. The additions are intended for institutional investors and issuers using tokenised financial assets.

The move adds to Ripple's broader effort to expand beyond payments into market infrastructure for traditional finance. It comes as asset managers, custodians and other financial institutions explore how tokenised fund structures could be used for trading, settlement and collateral management.

Ripple argues that existing market systems leave collateral idle and can slow settlement. Its model combines issuance, custody, collateral use, multi-currency investment and atomic settlement, with its RLUSD stablecoin serving as the cash leg in delivery-versus-payment transactions.

Under that model, tokenised funds can be used as collateral from issuance, and trades settle on the XRP Ledger. Ripple describes this as a single operating model for institutions across trading and post-trade activity.

Market build-out

ZILO focuses on transfer agency and fund administration technology. Its systems provide asset managers, custodians and transfer agents with digital record-keeping that can support tokenised share classes as funds move onchain.

That role is central in regulated fund markets, where transfer agents maintain investor records and process ownership changes. In tokenised structures, that record-keeping function becomes a key link between conventional fund administration and blockchain-based issuance.

Licuido, by contrast, provides a platform for tokenisation and trading. It manages issuance, distribution and execution so that assets, including fund shares, can move as digital collateral through atomic settlement infrastructure.

The two investments build on Ripple's earlier institutional tokenisation work with Aviva Investors, Franklin Templeton and DBS, according to Nigel Khakoo, Senior Vice President, Trading and Markets, Ripple.

"Tokenization of assets is only the starting point: the real value lies in what can be done with a token, including buying, selling, and settling trades instantly, or using it as collateral to borrow, lend, or post margin," said Nigel Khakoo, Senior Vice President, Trading and Markets, Ripple.

"Our partnerships with Aviva Investors, Franklin Templeton and DBS demonstrate how asset managers are focused on deploying tokenised fund structures at scale. 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," said Khakoo.

Institutional focus

The emphasis on transfer agency and collateral mobility reflects a broader industry debate over whether tokenisation can move beyond simple digital representation of assets. Financial groups have increasingly argued that the value of tokenised funds depends on whether they can be traded, financed and used in collateral chains under regulated conditions.

ZILO said the investment will support its work on tokenised share classes for institutions. The company serves UK asset managers and financial institutions with digital transfer agency technology.

"As fund structures move onchain, transfer agents and asset managers need infrastructure that can handle tokenized share classes without adding operational risk," said Phil Goffin, Founder and CEO, ZILO.

"Ripple's investment enables us to accelerate that work by bringing digital market utility and efficiency directly into our platform for the institutions we serve," said Goffin.

Licuido said its platform is designed to address the gap between tokenisation and usable liquidity. Its business includes Licuido Markets, which it describes as an FCA-regulated trading platform for digital capital markets activity.

"Tokenization, by itself, only solves part of the challenge of unlocking liquidity. Licuido's platform allows clients to take the next step by delivering issuance, distribution and utility, within a controlled, confidential, and regulated digital capital markets platform," said Brian Lynch, Chief Executive Officer and Co-Founder, Licuido.

"Ripple's backing helps us to scale that infrastructure and our collateral marketplace, on the XRPL, helping institutions turn assets that have sat idle on their balance sheets into liquidity they can actually use," said Lynch.

Ledger role

Ripple has been positioning the XRP Ledger as a venue for tokenised traditional assets as well as digital payments activity. Earlier this year, it said it was working with Aviva Investors to tokenise traditional fund structures on the ledger, while defining the token standard and working with partners including ZILO and Licuido on issuance, distribution and custody.

The ledger has processed more than four billion transactions since launch, supports more than seven million active wallets and is maintained by 120 independent validators, according to Ripple. The company also cites low and predictable fees, compliance tools and the absence of energy-intensive mining as features that may appeal to asset managers considering tokenised funds.

The latest investments suggest Ripple is trying to assemble a broader institutional stack around the XRP Ledger rather than relying on token issuance alone. By adding record-keeping, distribution and collateral functions, it is seeking a larger role in the plumbing of digital capital markets.