Ripple's New Bets on Tokenized Fund Infrastructure: What ZILO and Licuido Actually Do

cryptonews.net6 min read
Ripple's New Bets on Tokenized Fund Infrastructure: What ZILO and Licuido Actually Do
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RWA Signal Insight

Private Credit

Ripple has strategically invested in ZILO and Licuido to address the structural inefficiencies currently hindering institutional RWA tokenization on the XRP Ledger. While tokenized fund shares are increasingly issued on-chain, they often remain stagnant due to fragmented legacy systems that fail to integrate with collateral markets. ZILO provides the necessary regulated transfer agency and digital record-keeping, while Licuido enables the use of these fund shares as collateral without requiring a sale. By combining these services with Ripple’s RLUSD stablecoin for cash settlement, the company aims to create a unified stack that supports the entire lifecycle of a fund asset. This infrastructure allows institutions to move from static holdings to active liquidity, facilitating borrowing and lending against tokenized assets. The initiative builds upon Ripple’s previous success with the Aviva Investors USD Liquidity Fund, which launched on XRPL in July 2026. Ultimately, this move seeks to solve the 'parked asset' problem, ensuring that tokenized shares can function as dynamic instruments within institutional capital markets.

Key points

  • Ripple invested in ZILO and Licuido to integrate record-keeping and collateral mobility on XRPL.
  • ZILO provides on-chain transfer agency services, while Licuido enables using fund shares as collateral.
  • The stack utilizes RLUSD as the settlement layer for delivery-versus-payment transactions.
  • The infrastructure builds on the Aviva Investors USD Liquidity Fund, live on XRPL since July 2026.

Background

The XRP Ledger (XRPL) is a decentralized, public blockchain designed for high-speed, low-cost financial transactions and asset tokenization. It utilizes a consensus protocol maintained by independent validators to support institutional-grade settlement and the issuance of various digital assets, including stablecoins and tokenized fund shares.

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