Ripple partners with Archax to launch the first tokenized money market fund on XRP Ledger, enhancing digital asset adoption.
Ripple has partnered with Archax, a UK-regulated digital asset exchange, to launch a groundbreaking tokenized money market fund. The collaboration was announced in a press release on November 25. The fund, managed by UK asset manager abrdn, will be available on the XRP Ledger (XRPL), a decentralized blockchain.
Legalized digital asset exchange, broker, and custodian Archax has enabled the provision of a tokenized form of abrdn’s money market fund. This is quite a development because it is the first money market fund to be tokenised on the XRPL. It also outlines the development of XRPL as a central player in the tokenization of the real-world assets (RWA) and institutional DeFi markets.
The use of Ripple in the project is a positive sign in enhancing the financial structure by bringing down the operating expense and enhancing the speed of the settlement. Ripple recently expressed its enthusiasm for the partnership on the X account, particularly the vast opportunity to tokenize assets. Given estimations which suggest tokenized assets could be worth up to $16 trillion by 2030, the initiative paves the way for access to cheaper capital markets on the XRPL.
Ripple Invests $5 Million in abrdn’s Tokenized Lux Fund
Under this partnership, Ripple has invested five million tokens in abrdn’s Lux fund, or abrdn’s $3.8 billion USD liquidity fund. This investment is an example of Ripple’s long-term approach to onboard real-world assets to the XRPL together with multiple asset managers.
Duncan Moir from abrdn said that digital securities will be the cornerstone of the subsequent phase of the financial market. He explained the potential benefits of shifting investment and settlement to the blockchain using the XRPL’s cost-saving and compliance capabilities.
The other speaker was Graham Rodford, the CEO of Archax, who also emphasized the increasing trend of using tokenized real-world assets. He also noted that through Archax they were tokenizing assets such as equities, debt instruments, and money market funds. Further, he points out that financial institutions are slowly beginning to appreciate the importance of adopting digital assets.
With more investors migrating to tokenized assets, Ripple Custody remains relevant in offering solutions for managing and trading digital assets, a testament to the fact that XRPL is an institutional-grade blockchain network.
