How XRPL and Axelar Aim to Connect Blockchain Ecosystems

The XRP Ledger partners with Axelar to boost real-world asset tokenization with cross-chain interoperability.

Guy looking at XRP moving in a slow wave.
Created by Kornelija Poderskytė from DailyCoin
  • The XRPL and Axelar partnership has focused on enhancing real-world asset tokenization.
  • Axelar’s technology will allow the XRPL to connect with various blockchains.
  • Investment banks have predicted that RWA tokenization potential will be a major driver of blockchain adoption.

The XRP Ledger (XRPL), a leading blockchain platform for fast and secure transactions, is set to enhance its capabilities for real-world asset (RWA) tokenization through a new partnership with the Axelar Foundation. This collaboration aims to unlock the next growth phase in this rapidly evolving space.

Axelar Network Connects Over 55 Blockchains to XRPL

The partnership will leverage Axelar’s General Message Passing (GMP) technology to facilitate seamless communication between XRPL and over 55 other blockchains. This cross-chain interoperability will empower developers to build decentralized applications (dApps) on XRPL that interact with smart contracts residing on diverse blockchain ecosystems.

The integration promises several benefits, including increased liquidity for stablecoins and large-cap assets. “Real-world asset tokenization will be the driving force of the blockchain economy,” stated David Schwartz, Chief Technology Officer of Ripple and co-creator of XRPL. 


He envisions traditional lending platforms embracing tokenized RWAs for collateralized loans, unlocking new possibilities in the financial landscape. XRPL boasts a decade-long history of stability and reliability, with its daily activity volume witnessing an 8.8% increase in 2023. 

This growth reflects the platform’s versatility, with notable surges in non-fungible token activity. Founded in 2020, Axelar provides a decentralized communication layer enabling seamless data exchange between blockchains, eliminating the need for intermediaries or centralized control. 

Trillion-Dollar Potential in RWA Tokenization

This Canadian startup, spearheaded by veterans from Algorand and MIT, is poised to play a crucial role in fostering interoperability across the blockchain landscape. Schwartz believes that “Axelar’s integration will help broaden blockchain adoption by facilitating RWA tokenization.” 


Tokenization essentially converts ownership rights of real-world assets like real estate, art, or company shares into digital tokens on a blockchain, facilitating easier buying, selling, and trading.

Investment banking giant Citi predicts RWA tokenization to become a “killer use case” in the crypto space, potentially reaching a market size of $4-5 trillion by 2030. This growth is primarily driven by the anticipated tokenization of private equity, real estate, and debt markets, with private equity leading the charge due to its inherent liquidity and fractionalization potential.

On the Flipside

  • Despite the hype, real-world adoption of RWA tokenization remains nascent. Regulatory frameworks and infrastructure development must catch up to unlock the potential of this technology fully.
  • Integrating diverse blockchains through Axelar’s GMP introduces new attack vectors requiring careful security audits and ongoing maintenance.

Why This Matters

This collaboration between XRPL and Axelar unlocks the potential for XRPL to become a major player in the rapidly growing RWA tokenization market, with significant implications for the future of blockchain adoption and financial innovation.

To learn more about how XRP Healthcare is revolutionizing private healthcare in Africa using blockchain technology, read here:

XRP Healthcare Advances as XRPL Network Validator

If you’re interested in learning more about XRP and how to buy it, this guide provides a step-by-step process:

How to Buy XRP: A Step-by-Step Guide

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.