Ripple, a major blockchain payments startup, has partnered with Archax, a UK-regulated digital asset exchange, to launch the first tokenized money market fund on the XRP Ledger. UK-based asset manager Abrdn manages the fund, which is part of its $4.77 billion US Dollar Liquidity Fund. This endeavor represents a big step forward in the emerging field of tokenizing real-world assets (RWAs) on the blockchain.
Ripple’s partnership intends to use the XRP Ledger’s efficiency to accelerate investment and cash settlement procedures, resulting in significant cost savings and operational improvements. Archax’s platform has tokenized Abrdn’s money market fund, enhancing its accessibility to institutional investors. Ripple has also agreed to invest $5 million in Abrdn’s US Dollar Liquidity Fund tokens, demonstrating its continued interest in tokenized financial products.
Archax, in collaboration with @Ripple, has launched the first tokenised money market fund on #XRPL.
— Archax (@ArchaxEx) November 25, 2024
This groundbreaking initiative brings tokenised access to @abrdn_plc $3.8 billion US dollar Liquidity Fund, paving the way for enhanced operational efficiencies and institutional… pic.twitter.com/9TpXhqBOtz
The move is part of Ripple’s overall goal to acquire a slice of the RWA tokenization industry, which is likely to expand rapidly in the next few years. According to market analysts, the tokenization of RWAs could reach $16 trillion by 2030, with tokenized money market funds already amassing over $1 billion in assets under management.
This launch demonstrates Ripple’s expanding prominence in the digital asset industry, as well as the potential for blockchain technology to alter existing financial systems. People view Ripple’s collaboration with Archax and Abrdn as a crucial step in building a financial infrastructure that is more efficient, transparent, and accessible. The impetus for tokenized RWAs is growing as more financial institutions understand the benefits of using blockchain technology for asset management.
