- Key Features Positioning XRPL for Tokenization
- Ripple and Archax Vision
- Decline in Transaction Activity
A recent extension of the collaboration between Ripple and UK-based digital asset exchange Archax is expected to drive hundreds of millions of real-world assets (RWA) to XRP Ledger (XRPL). This move is anticipated to open new opportunities for developers and builders on the XRPL.
Key Features Positioning XRPL for Tokenization
The developer arm of Ripple Labs, RippleX, has declared a new era for the XRP Ledger (XRPL) in a blog post detailing a new collaboration between Ripple and Archax. According to the post, the network has processed over 2.8 billion transactions, moving about $1 trillion of value. Supported by over 100 validators and more than 5 million active XRP wallet holders, the network can handle large numbers of transactions instantly and cheaply. It includes compliance tools, tokenization capabilities, a native decentralized exchange, and supports institutional-grade financial use cases. Upcoming features mentioned in the blog include Automated Market Maker (AMM), Decentralized Identifier (DID), and Multi-Purpose Tokens (MPT).
Ripple and Archax Vision
The enhanced collaboration between Ripple and Archax expands opportunities for developers and builders on the XRPL. Financial institutions can now tokenize their real-world assets on the XRPL, paving the way for innovative applications and services. The shared compliance-first approach of both platforms implies ongoing work with regulators and policymakers to integrate crypto and blockchain into the financial system seamlessly. The collaboration aims to create new financial instruments, provide access to a diverse range of tokenized assets, increase liquidity, and ensure transparency and security.
Decline in Transaction Activity
Despite advances in tokenization, some key metrics have been struggling, with the number of transactions on the XRPL significantly declining from the first to the second quarter of 2024. As reported in Ripple’s Q2 2024 XRP Markets Report, transaction activities on the XRPL decreased by 65.6% in Q2 2024. Specifically, 86.38 million transactions were recorded compared to 251.39 million in Q1 2023.
At press time, XRP was trading at $0.56 after declining by 0.66% in the last 24 hours.
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