Ripple has recently joined forces with the Axelar Foundation to enhance interoperability within the XRP Ledger (XRPL) blockchain. This partnership is poised to focus on advancing the tokenization of real-world assets (RWAs), a trend that has been gaining momentum in the crypto industry. By integrating the Axelar network with XRPL, the aim is to bolster the DeFi ecosystem’s liquidity for stablecoins and high-value assets. Additionally, developers are set to benefit from leveraging XRPL’s inherent features, including its native DEX, upcoming AMM, and secure payment system.
In recent years, the tokenization of real-world assets has become a prominent trend in the crypto space. Both individual users and institutional players have shown a growing interest in this concept. Recognizing the potential in this trend, the Axelar Foundation seeks to drive the adoption of blockchain technology by enabling the tokenization of real-world assets through its collaboration with Ripple. The Axelar network will play a key role in deploying cross-chain dApps directly on the XRPL, expanding the platform’s capabilities.
The partnership between Ripple and the Axelar Foundation is crucial in enhancing XRPL’s interoperability by connecting it with a broader network of blockchain environments. This collaboration goes beyond simply bridging connections within the XRPL ecosystem and extends interoperability to Axelar’s interconnected blockchains. By introducing General Message Passing (GMP), XRPL developers can now execute function calls on smart contracts across over 55 connected blockchains, facilitating secure cross-chain exchange of data and function calls.
David Schwartz, CTO of Ripple and Co-creator of XRPL, expressed optimism about the collaboration with Axelar. He highlighted how Axelar’s initiative will elevate XRPL’s interoperability, broaden its reach to different blockchain ecosystems, and unlock new pathways for utility and innovation. The partnership builds on Ripple’s XLS-38 proposal, which originally aimed to improve interoperability within the XRPL ecosystem by bridging connections between the mainnet and sidechains.
XRPL’s Decade-Long Operation and Recent Trends
XRPL has been operational for over a decade, demonstrating stability and resilience in the ever-evolving crypto space. According to a recent report by Messari, network activity on XRPL saw a mixed trend in the fourth quarter, with a decrease in active addresses but an increase in transactions compared to the previous quarter. Notably, NFT mints experienced a substantial surge, indicating a growing interest in NFTs within the XRPL ecosystem. The introduction of the XLS-20 standard in 2022 has played a significant role in this increase, with a notable 491% rise in NFT mints quarter-over-quarter.
The partnership between Ripple and the Axelar Foundation represents a significant step towards enhancing interoperability, advancing tokenization, and driving innovation within the XRPL ecosystem. By connecting with Axelar’s network of interconnected blockchains and leveraging General Message Passing technology, XRPL is poised to enter a new era of cross-chain collaboration and functionality. As the crypto industry continues to evolve, partnerships like this one will be instrumental in shaping the future of blockchain technology.