Ripple & Axelar Unite to Supercharge RWA Tokenization on XRP Ledger 🚀🌍

Ripple Partners with Axelar Foundation to Enhance Interoperability on the XRP Ledger

Ripple has announced a partnership with the Axelar Foundation to boost interoperability within the XRP Ledger (XRPL) blockchain. The collaboration aims to advance the tokenization of real-world assets (RWAs) and strengthen the layer 1’s DeFi ecosystem.

The integration of the Axelar network with the XRPL will provide necessary liquidity for stablecoins and high-value assets, while developers can leverage the XRPL’s native features such as its native DEX, upcoming AMM, and renowned payment system.

Focus on Tokenization of Real-World Assets (RWAs)

Tokenization of real-world assets (RWAs) has become a major trend in the crypto industry. The Axelar Foundation seeks to expand blockchain adoption by facilitating the tokenization of RWAs through its partnership with Ripple.

The Axelar network will also enable the deployment of cross-chain dApps directly on the XRPL. It introduces General Message Passing (GMP) which enhances XRPL’s capabilities by allowing developers to execute function calls on smart contracts across more than 55 connected blockchains.

This functionality ensures secure, cross-chain exchange of various payloads, including data and function calls, through Axelar’s GMP.

CTO David Schwartz’s Statement

“This initiative from Axelar will help enhance the XRPL’s interoperability by extending it to a wider network of blockchain environments while complementing the XRPL’s rich feature set and opening up new pathways for utility and innovation.” – David Schwartz, CTO of Ripple and Co-creator of the XRPL

Ripple’s XLS-38 proposal was the initial step towards improving interoperability within the XRPL ecosystem. By partnering with the Axelar Foundation, Ripple extends this interoperability beyond XRPL and links it with Axelar’s network of interconnected blockchains.

This collaboration expands interoperability horizons for XRPL, allowing it to access new ecosystems and drive multi-chain innovation.

XRPL Network Stats

The XRP Ledger (XRPL) has been in operation for over a decade. In the fourth quarter, network activity on XRPL showed a mixed trend:

Active addresses decreased by 31.3% compared to the previous quarter.
Transactions increased by 22.7% during the same period.
NFT mints experienced a significant surge of 491% quarter-over-quarter, resulting in a 170% rise in total NFT transactions.

In Q4’23 alone, there were 3.4 million NFT mints, which accounted for more than half of all mints since the introduction of the XLS-20 standard in 2022.

Hot Take: Boosting Interoperability and Tokenization on XRPL

Ripple’s partnership with the Axelar Foundation is set to enhance interoperability and drive tokenization on the XRP Ledger (XRPL). The integration of the Axelar network with XRPL will bring liquidity to stablecoins and high-value assets within the layer 1 DeFi ecosystem.

By facilitating the tokenization of real-world assets (RWAs), this collaboration aims to expand blockchain adoption and tap into the growing trend of asset digitization. Developers will also benefit from leveraging XRPL’s native features, including its DEX, upcoming AMM, and secure payment system.

The partnership enables cross-chain deployment of dApps on the XRPL, with Axelar’s General Message Passing (GMP) enhancing XRPL’s capabilities. This opens up new possibilities for executing function calls on smart contracts across multiple connected blockchains.

Ripple’s initiative to improve interoperability through the XLS-38 proposal is further extended with the partnership. By linking XRPL with Axelar’s network of interconnected blockchains, XRPL gains access to new ecosystems and drives multi-chain innovation.

The XRP Ledger (XRPL) has seen a mixed trend in network activity in the fourth quarter. While active addresses decreased, transactions increased, and there was a significant surge in NFT mints and transactions. This highlights the growing interest and adoption of XRPL for various use cases, including asset tokenization.

Overall, Ripple’s partnership with the Axelar Foundation strengthens XRPL’s position as a leading blockchain platform for tokenization and interoperability. The collaboration paves the way for innovation and utility in the crypto industry, driving the adoption of blockchain technology for real-world assets.