ORQO Group launched in Abu Dhabi with $370 million in assets, planning on-chain yield for Ripple’s RLUSD stablecoin, boosting RWA tokenization.

Executive Summary

ORQO Group has launched in Abu Dhabi, consolidating four traditional finance and crypto firms with $370 million in assets under management. The group intends to provide private credit-backed on-chain yield for Ripple’s RLUSD stablecoin via its yield platform, Soil, operating on the XRP Ledger. This initiative underscores the accelerating institutional adoption of real-world asset (RWA) tokenization and the maturation of decentralized finance (DeFi).

The Event in Detail

ORQO Group formally commenced operations in Abu Dhabi, integrating four distinct entities spanning traditional finance and crypto asset management. The newly formed group manages $370 million in assets. A primary objective is to offer on-chain yield services for Ripple’s RLUSD stablecoin through its dedicated yield arm, Soil. This platform is designed to operate on the XRP Ledger. ORQO currently possesses operational licenses in Europe and is actively seeking approval from the Financial Services Regulatory Authority (FSRA) in Abu Dhabi to expand its Middle Eastern footprint. The Soil DeFi protocol is developed to be MiCA compliant, aligning with European regulatory standards. Nicholas Motz, CEO of ORQO, stated the launch represents an opportunity to establish a global on-chain asset management presence.

Financial Mechanics of RLUSD Yield

Soil functions as a blockchain-based lending protocol, designed to bridge the divide between traditional financial markets and the crypto ecosystem by facilitating corporate debt and fixed-income investments. The platform offers fixed Annual Percentage Rates (APRs) ranging from 5% to 8% on RLUSD stablecoins. These yields are generated from underlying assets, including short-term U.S. Treasuries, money market funds (MMFs), crypto hedge fund loans, and private credit strategies. Loans are primarily extended to Small and Medium-sized Enterprises (SMEs), managed by private debt fund managers. Each approved loan is fully collateralized by Real World Assets, reinforced by comprehensive legal documentation such as registered pledges on shares, asset mortgages, and personal guarantees. Soil employs a multi-chain Guarantee Fund, funded by a portion of the protocol’s profits, to mitigate risk and safeguard against potential losses. Ripple has clarified that while RLUSD is not inherently yield-sharing, third-party platforms like Soil are permitted to offer yield, subject to their own regulatory frameworks. Soil operates within a regulated framework, adhering to EU law, and has successfully completed a security audit by Hacken.

Business Strategy & Market Positioning

ORQO Group's strategy reflects a broader trend of integrating traditional financial instruments, such as private credit, onto blockchain infrastructure. The market for RWA tokenization is experiencing substantial growth, with projections estimating an increase from $185 billion in 2024 to $18.9 trillion by 2033, potentially reaching $30 trillion by 2030 when stablecoins are included. This strategic move aligns ORQO with major financial institutions exploring RWA tokenization, exemplified by initiatives like BlackRock's BUIDL fund. By establishing its operations in Abu Dhabi, ORQO contributes to positioning the emirate as a key global hub for institutional crypto and RWA activities. The Soil platform's XRPL-native design aims to provide institutional-grade access to real-world yield within the XRP Ledger ecosystem, positioning it as a compliant yield protocol on XRPL. This approach also leverages XRPL’s built-in transaction logic, cited for its security advantages over traditional EVM smart contracts.

Broader Market Implications

The launch of ORQO Group and its plans for RLUSD yield platforms could catalyze significant capital influx into tokenized real-world assets. This development is anticipated to bolster Abu Dhabi's standing as a leading jurisdiction for crypto and Web3 innovation. Furthermore, the initiative is poised to enhance the utility and adoption of both the XRP Ledger and the RLUSD stablecoin, fostering broader institutional engagement in DeFi and RWA tokenization. The structured approach to yield generation, backed by tangible assets and regulatory compliance, may serve as a model for future institutional ventures in the digital asset space, increasing overall market confidence and attracting new participants to the ecosystem.