Ripple and Archax introduce the first tokenized money market fund on the XRP Ledger

Ripple has announced it is teaming up with UK-based FCA-regulated digital asset exchange Archax to launch a tokenized money market fund on the XRP Ledger (XRPL). The fund, managed by UK asset manager abrdn, is part of its £3.8bn US dollar liquidity fund (Lux).

This move marks the first instance of a tokenized money market fund being deployed on the XRPL blockchain.

First money market fund tokenized on XRPL

According to the official press release, Ripple plans to tap into the growing potential of tokenized finance, as highlighted by data from McKinsey, which estimates more than $1 billion in assets under management for tokenized money market funds and projects that the value total tokenized assets will reach $16 trillion. by 2030.

As part of the latest collaboration, Ripple has allocated $5 million to tokens linked to the abrdn Lux fund. This allocation is part of the company’s broader strategy to invest in RWA projects using XRPL and to encourage institutional adoption of blockchain technology.

Commenting on the development, RippleX Senior Vice President Markus Infanger said:

“The arrival of abrdn money market fund on XRPL demonstrates how real-world assets are being tokenized to improve operational efficiency, while further strengthening XRPL as one of the leading blockchains for the tokenization of real-world assets.”

Ripple and Archax expanded their partnership in June, aiming to contribute hundreds of millions of dollars in tokenized RWA to the XRPL. The main goal of leveraging blockchain is to achieve cost reductions and operational improvements in capital markets.

Advance RWA tokenization

The XRPL is an open source, decentralized blockchain that serves as the underlying technology for XRP. Ripple’s work with Archax reflects a growing emphasis on using XRPL to tokenize traditional financial instruments.

This approach aligns with Ripple’s plans for OpenEden to tokenize US Treasuries (bills) on the XRPL in August. At the time, the company had also announced a $10 million fund to back these tokenized products.

Prior to this, Ripple had partnered with the Axelar Foundation to advance XRPL’s ability to handle RWA tokenization.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

LIMITED OFFER for CryptoPotato readers on Bybit – Use this link to register and open a FREE $500 position with any currency!