Axelar (AXL) Gains Institutional Traction as Canary Capital Launches AXL Trust to Track Token Performance

Asset manager Canary Capital announced the launch of the Canary AXL Trust, an institution-grade fund tracking the performance of the Axelar native token AXL.

Asset management firm Canary Capital announced the launch of the Canary AXL Trust on Wednesday, an institution-grade fund tracking the performance of the Axelar native token AXL. The investment product will serve as a simple and efficient way for institutions to gain exposure to the crypto asset.

This marks the first Canary investment product to offer indirect exposure to an asset in the blockchain interoperability category. The launch signals Axelar’s growing institutional traction and the sector’s emergence into the mainstream.

Moreover, Canary has appointed Coinbase as the custodian for the Axelar Trust. The leading US-based exchange will safely store investors’ funds and facilitate transactional settlements for the trust.

Axelar Adoption Surges, Attracting Institutions

The launch comes amid increasing adoption of the Axelar interoperability solution. The cross-chain bridge provider offers interaction with over 80 unique chains in the cryptocurrency space.

Axelar’s technology saw mass adoption in the crypto space last year. Following strategic partnerships with high-caliber blockchains, the solution enables Web3 connectivity between ecosystems like the XRP Ledger (XRPL), Sui, Stellar, TON, Bitcoin, and Hedera.

Surging traction saw Axelar hit a total value locked (TVL) of $1 billion earlier this year. The blockchain also attracted institutional partnerships, including Deutsche Bank, Microsoft, and JP Morgan.

Ripple Partners Axelar for XRPL Interoperability

One of Axelar’s notable partnerships was with Ripple to provide interoperability services for the XRPL Ledger. In 2022, the blockchain solution forged a collaboration with the payment giant to act as a bridge between the XRPL and the XRPL Ethereum Virtual Machine (EVM) sidechain.

Ripple is constructing the XRPL EVM sidechain in collaboration with Peersyst, leveraging the evmOS to ensure compatibility with other chains and complete customizability on the Cosmos SDK. Introducing the sidechain will enhance XRPL’s opportunities in decentralized finance (DeFi).

Axelar is also reportedly working with Ripple on the RLUSD interoperability with other chains. The launch of the stablecoin expanded the utility of the XRP Ledger, and the partnership aims to allow the stablecoin to operate seamlessly in different chains.