According to CoinDesk, XRP has outperformed bitcoin (BTC) and other major cryptocurrencies in the past 24 hours following the launch of a money market fund on the XRP Ledger by regulated crypto broker and custodian Archax. This initiative marks a first for the network and involves collaboration with Ripple Labs and Abrdn. Archax has introduced Abrdn’s U.S. dollar Liquidity Fund (Lux) in a tokenized form on the XRP Ledger (XRPL). Ripple has committed $5 million worth of tokens into Abrdn’s Lux fund, which is part of a broader allocation to real-world assets (RWAs) on the XRPL.
The price of XRP surged by 6%, reaching a high of $1.49 shortly after the announcement, although it later experienced a decline amid a market-wide drop. Over the past week, XRP has risen by 27% and has more than doubled in value over the last two weeks, driven by several positive developments. Real-world assets (RWAs) refer to tangible or financial assets such as real estate, commodities, or bonds that exist outside the digital realm but can be represented as tokens on a blockchain. This tokenization process facilitates fractional ownership, enhances liquidity, and simplifies the transfer of these assets.
A money market involves the trading of short-term, high-quality debt instruments like Treasury bills, commercial paper, and certificates of deposit, primarily used by large institutions to manage their short-term cash needs. Archax has been utilizing Ripple’s digital assets custody services since 2022. The Lux fund currently manages over $3.8 billion in assets, according to a release. The introduction of the tokenized money market fund on the XRPL is seen as a significant step forward in the growth of real-world asset tokenization, a sector that is gaining considerable attention in the crypto industry.
A report by global consulting firm McKinsey & Company in July projected that the tokenized asset market could reach $4 trillion in an optimistic scenario by 2030. Additionally, Boston Consulting Group and 21Shares have forecasted that the market for tokenized assets could exceed $10 trillion by the end of the decade, as previously reported by CoinDesk.
