Ripple has announced strategic investments in ZILO and Licuido, two companies focused on building infrastructure for digital investment funds and the trading of institutional assets. These investments are part of Ripple’s broader strategy to enhance its institutional digital asset services.
ZILO offers technology for transfer agency and fund administration for tokenized share classes, while Licuido operates a regulated platform in the United Kingdom for issuing, distributing, trading, and utilizing traditional assets as digital collateral. Ripple intends to connect these services with its existing XRP Ledger infrastructure, aiming to empower institutions in issuing, transferring, custody, and using tokenized assets as collateral. The integration could potentially leverage RLUSD for settlement, enabling simultaneous settlement of assets and payments.
In a related development, Flare’s wrapped XRP (FXRP) has been approved for use as collateral within an RLUSD lending pool managed by Sentora. This collateral vault, operating on Morpho Blue, is valued at $280 million, with approximately 155 million FXRP minted by the announcement date. This mechanism allows users to deposit FXRP and borrow RLUSD, thereby maintaining their exposure to XRP.
Additionally, Mastercard has completed its acquisition of BVNK, a stablecoin infrastructure company that supports XRP deposits and outgoing payments, a move expected to further bridge traditional and digital finance.
Meanwhile, XRP exchange-traded funds (ETFs) experienced a significant slowdown in net inflows during July, recording approximately $27 million. This marks a decrease from the $60 million in June and $132 million in May. While these declining inflows might indicate a cooling of institutional momentum, the continued positive net inflows suggest ongoing investor interest in XRP.
As of August 4th, XRP was trading around $1.07, remaining below its 20-day exponential moving average of approximately $1.08 and its 50-day average around $1.12. Analyst ChartNerd has characterized the current price structure as a falling wedge near a six-year support area. According to ChartNerd, the upcoming months could position XRP for a broader repricing, although a temporary dip below $1 remains a possibility. A sustained move above $1.08 and $1.12 would be necessary to improve the short-term outlook and support a more reliable rally.
The specific amounts of Ripple’s investments in ZILO and Licuido were not disclosed. Furthermore, the exact timeline for integrating these new services with the XRP Ledger infrastructure remains unspecified. While analyst commentary points to potential future price appreciation, the possibility of a temporary break below $1 for XRP exists, and the extent of any potential repricing is uncertain.
Why This Matters
The materials describe a narrow update: Ripple invested in ZILO and Licuido to build infrastructure for digital investment funds and trading of institutional assets. The size of Ripple’s investments in ZILO and Licuido was not disclosed.
Broader Context
Source materials place the factual news in this context: Ripple announced yet another expansion of its institutional digital asset strategy.
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