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Ripple and Axelar Foundation Partnership Enhances Interoperability on XRP Ledger
Ripple has joined forces with the Axelar Foundation to improve interoperability on the XRP Ledger (XRPL), with a focus on advancing the tokenization of real-world assets (RWAs).
Expanding Utility in the Crypto Sector
This collaboration aims to provide developers with new integration possibilities and expand the XRPL’s influence in financial services. Through this partnership, developers will gain access to Axelar’s General Message Passing (GMP) protocol, enabling interactions with smart contracts across more than 55 blockchains.
By leveraging XRPL’s reliability and stability, developers will have access to a trusted platform for tokenization and the efficient exchange of crypto-native and real-world assets.
Integrating Axelar’s Network with XRPL
Integrating Axelar’s network with XRPL will enable secure and efficient asset transfers across over 55 interconnected blockchains, facilitating the seamless deployment of decentralized applications (dApps) on the XRPL, Ripple’s public blockchain.
Key Benefits of the Partnership
This partnership includes expanding liquidity for stablecoins and high-value assets. Developers can utilize XRPL’s native features, including its decentralized exchange (DEX), upcoming automated market maker (AMM), and renowned payment system known for its security and efficiency.
Axelar’s cross-chain security approach, based on permissionless proof-of-stake validation, ensures secure transactions across interconnected blockchains. The XRPL will be integrated into Axelar’s secure cross-chain infrastructure through a multi-signature contract with 32 Axelar validators, further enhancing network security and resilience.
Implications for the Blockchain Economy
Georgios Vlachos, co-founder of the Axelar protocol and director of the Axelar Foundation, expressed excitement about the XRPL integration, highlighting Axelar’s ability to create seamless user experiences across different consensus mechanisms.
David Schwartz, Ripple’s Chief Technology Officer and XRPL co-creator, emphasized the potential of tokenized RWAs in driving the blockchain economy forward. He anticipates increased adoption of tokenized RWAs for collateralized loans on traditional lending platforms.
Real-world asset tokenization is expected to be the driving force of the blockchain economy, with real estate, commodities, treasuries, and bonds being the leading use cases.
Growth and Future Projections
The XRP Ledger has demonstrated steady growth in daily activity volume and experienced an 8.8% increase in daily activity volume in 2023, driven by various transaction types, including a substantial rise in nonfungible tokens (NFTs) activity.
Axelar, a Canadian startup founded in 2020, offers an interoperability solution that enables seamless communication between blockchains without intermediaries. This integration aims to facilitate the tokenization of real-world assets, thereby broadening blockchain adoption.
Tokenization, representing rights to an asset as digital tokens on a blockchain, is gaining momentum. Investment bank Citi projects that RWA tokenization could reach $4 trillion to $5 trillion by 2030, driven by assets such as private equity, real estate, and debt markets.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
