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Thursday, April 18, 2024

Ripple Partners Axelar to Boost Real-World Asset (RWA) Tokenization on XRP Ledger

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Ripple partnered with the Axelar Foundation to boost interoperability within the XRP Ledger (XRPL) blockchain, with a specific emphasis on advancing the tokenization of real-world assets (RWAs).

The integration of the Axelar network with the XRPL aims to strengthen the layer 1’s DeFi ecosystem by providing necessary liquidity for stablecoins and high-value assets. Meanwhile, the developers will benefit from leveraging the XRPL’s inherent features, such as its native DEX, upcoming AMM, and renowned payment system known for its security and efficiency.

Focus on RWA

“Tokenization,” especially of “real-world assets” (RWAs), has emerged as a major trend in the crypto industry, witnessing a considerable uptake in recent years, drawing interest from both individual users and major institutional players.

In a bid to leverage this trend, the Axelar Foundation seeks to expand the adoption of blockchain technology by facilitating the tokenization of real-world assets (RWAs) with its partnership with Ripple.

Furthermore, the Axelar network will facilitate the deployment of cross-chain dApps directly on the XRPL. In addition to conventional asset bridging, Axelar introduces General Message Passing (GMP), which is expected to enhance 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.

In a statement, David Schwartz, CTO of Ripple and Co-creator of the XRPL, said,

“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.”

Ripple’s XLS-38 proposal marked the initial move to improve interoperability within the XRPL ecosystem, specifically bridging connections between the mainnet and sidechains similar to the upcoming EVM sidechain.

Teaming up with the Axelar Foundation extends this interoperability beyond XRPL, linking it with Axelar’s network of interconnected blockchains. The company explained that this collaboration expands interoperability horizons, allowing XRPL to access new ecosystems and propel multi-chain innovation.

XRPL Network Stats

The XRP Ledger (XRPL) has been in operation for over a decade. According to a recent Messari report, network activity on XRPL showed a mixed trend in the fourth quarter.

While active addresses on XRPL decreased by 31.3% compared to the previous quarter, transactions increased by 22.7% during the same period. Notably, 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.

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