XRP Ledger sees first tokenized money market fund: More inside

• Ripple has partnered with Archax to launch the first tokenized money market fund on XRP Ledger.
• Ripple invested $5 million in Abrdn’s Lux Fund to expand the tokenized asset portfolio on XRPL.

Ripple [XRP] experienced a significant 9% price decline over the past 24 hours. Meanwhile, the company’s latest partnership with Archax is garnering significant attention.

Ripple’s new investment

Ripple has unveiled the launch of the first-ever tokenized money market fund on the XRP Ledger. This groundbreaking development features Abrdn’s $4.77 billion US Dollar Liquidity Fund.

As mentioned earlier, this innovative project is the result of Ripple’s collaboration with Archax, the United Kingdom’s first Financial Conduct Authority-regulated cryptocurrency exchange, broker, and custodian.

Interestingly, the move comes after a report from McKinsey revealed that tokenized money market funds have already surpassed $1 billion in assets under management.

Some forecasts suggest that the total value of tokenized assets could skyrocket to $16 trillion by 2030.

XRP Ledger set to gain?

In light of this growing demand, Ripple has committed $5 million to purchase tokens from Abrdn’s Lux Fund.

Remarking on the same, Duncan Moir, Senior Investment Manager at abrdn noted, 

“Real benefits are to be had from leveraging the efficiency of moving the end-to-end investment and cash settlement process on-chain.” 

Adding to the fray was Markus Infanger, Senior Vice President, RippleX who remarked, 

“There is no question that the on-chain economy is gaining traction.”

The story began in 2022

For those unaware, since 2022, Archax has been utilizing Ripple’s digital asset custody solutions, allowing more investors to securely store their tokenized money market fund units on the XRP Ledger (XRPL).

Ripple has been utilizing the XRPL for over ten years to power a wide range of financial services, including global payments, digital asset custody, and stablecoin issuance.

Graham Rodford, CEO, Archax put it best when he said, 

“There is now real momentum building for tokenized real-world assets, and Archax is at the forefront of tokenizing assets such as equities, debt instruments and money market funds.”