XRP tokenization efforts continue to make waves in the crypto sector as the Stellar Development Foundation (SDF), known for supporting the Stellar (XLM) blockchain, announced an investment in UK-based firm Archax. This strategic move underscores the growing importance of tokenized real-world assets (RWAs) in modern finance.

How XRP Supports the Rise of Tokenized Real-World Assets

The partnership between SDF and Archax aims to leverage the Stellar blockchain’s infrastructure to improve tokenization services. Archax has already integrated Stellar into its proprietary tokenization platform, unlocking the ability to launch products like the tokenized Aberdeen money market fund. This showcases the practical use of blockchain networks such as Stellar and XRP for bringing traditional financial instruments into a digital format.

Despite limited public details about the financial terms of the investment, the focus remains on creating a robust ecosystem that enables the smooth issuance and management of tokenized assets. Tokenization of traditional instruments—like bonds, funds, and equities—is gaining speed as banking institutions and asset managers look to reduce operational inefficiencies and maintain 24/7 market accessibility.

Global Tokenization Market Sees Accelerated Growth

The tokenized RWA market has been experiencing exponential growth. Reports from respected sources like McKinsey and Ripple/BCG highlight a doubling of this market in the last year alone, now valued at an estimated $26 billion. Forecasts suggest this market could grow into a trillion-dollar industry by 2030 as wider adoption continues.

Raja Chakravorti, Chief Business Officer at SDF, emphasized that the Stellar network was specifically designed to deliver quick settlement times and low transactional costs. These features make it exceptionally suited to handle the rise of tokenized real-world finance.

Chart showcasing the explosive growth of tokenized real-world assets over recent years.

Archax’s Expanding Role in Digital Finance

Archax stands out as one of the few digital asset exchanges globally with regulatory approval by the UK’s Financial Conduct Authority (FCA). The company’s recent acquisition of Deutsche Digital Assets, a BaFin-regulated entity, signals deeper expansion into crypto exchange-traded products (ETPs) across Europe. This highlights Archax’s ambition to lead the digital transformation of financial markets.

As both institutions collaborate to modernize asset representation using blockchain, their integration of Stellar’s infrastructure could serve as a foundational blueprint for tokenizing traditional markets. The strategy is not to disrupt existing financial systems, but rather to optimize and extend them using secure, immutable ledger technology like Stellar and XRP.

Outlook for XRP Tokenization in Financial Services

With traditional finance exploring decentralized solutions, investing in a platform like Archax positions the Stellar ecosystem—and by extension similar blockchains like Ripple’s XRP—as central players in the massive shift towards asset tokenization. Enhanced transparency, faster settlements, and round-the-clock market operations are driving institutional interest into this evolving space.

For crypto investors and financial firms alike, XRP tokenization represents not just a technical breakthrough, but a strategic evolution of how assets are structured, traded, and monitored globally. As the global finance landscape continuously digitizes, early movers like Stellar and Archax are setting the stage for the next decade of decentralization and innovation.

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Read more: Real-World Asset Tokenization Market Has Grown Almost Fivefold in 3 Years