Axelar collaborates with Ripple’s XRPL for RWA and cross-chain communication

Ripple has teamed up with the Axelar Foundation in a bid to enhance interoperability on the XRP Ledger (XRPL) blockchain and advance the tokenization of real-world assets (RWAs). The partnership will enable developers to utilize Axelar’s General Message Passing (GMP) to execute calls on smart contracts across more than 55 blockchains. This will facilitate the cross-chain deployment of decentralized applications on the XRPL. The integration is set to unlock liquidity for stablecoins and large-cap assets. David Schwartz, CTO of Ripple, believes that tokenized RWAs will be a driving force in the blockchain economy, particularly in the areas of real estate, commodities, treasuries, and bonds. The XRPL has experienced significant growth, with daily activity volume increasing by 8.8% in 2023. Axelar, a Canadian startup founded in 2020, offers a communication overlay between blockchains, enabling data sharing without intermediaries or centralized parties. Schwartz is confident that Axelar’s integration will support the adoption of blockchain technology for RWAs. Tokenization, the process of converting asset rights into digital tokens on a blockchain, is gaining traction and is predicted to be the next “killer use case” in the crypto industry. Citi estimates that the RWA tokenization market could reach $4 trillion to $5 trillion by 2030, primarily driven by private equity, real estate, and debt markets. Private equity is expected to be the most tokenized asset class due to its favorable characteristics for liquidity and fractionalization.