TL;DR
Ripple launches the first tokenized fund on the XRP Ledger (XRPL), based on abrdn’s US Dollar Liquidity Fund, managing $3.8 billion.
The collaboration with Archax and abrdn marks a significant step in real-world asset (RWA) tokenization and the adoption of blockchain in institutional finance.
The tokenized fund improves efficiency and reduces operational costs, with faster transactions and less reliance on intermediaries.
Ripple has announced the launch of the first tokenized fund on the XRP Ledger (XRPL). This fund is based on abrdn’s US Dollar Liquidity Fund, which manages a total of $3.8 billion.
The launch is a major step for the tokenization of real-world assets (RWAs) and marks a milestone in the adoption of blockchain technology in institutional finance. The collaboration between Ripple, Archax, and abrdn is part of a strategy designed to redefine the financial sector.
Ripple Enhances the Efficiency of Tokenized Assets
The tokenized fund on the XRP Ledger aims to improve efficiency and reduce operational costs associated with traditional funds. Thanks to Ripple’s infrastructure integration, the investment and settlement process is moved on-chain, resulting in faster transactions and less reliance on intermediaries.
The announcement had a highly positive impact on XRP, Ripple’s cryptocurrency. It rose by 7.45% in the last 24 hours, reaching a value of $1.45. XRP has had a month full of successes, registering an increase of nearly 184% in its value. Its market capitalization is approaching $83 billion.
The financial sector has always faced challenges related to the slowness and costs of conventional transactions. Ripple, thanks to a $5 million investment in abrdn’s fund tokens, is demonstrating a real commitment to asset tokenization and strengthening its platform as a solution for the institutional sector.
$16 Trillion by 2030
The tokenized asset market has grown rapidly in recent years, and its value is expected to reach $16 trillion by 2030. Currently, tokenized funds already exceed a trillion dollars in assets under management, with growing demand showing the interest of institutions in this type of asset. With this initiative, Ripple and Archax aim to usher in a new era focused on digital assets, improving not only operational efficiency but also expanding the possibilities of blockchain adoption.
Additionally, the launch of the tokenized fund also demonstrates XRPL’s ability to handle large-scale financial operations, positioning it as a key platform for the development of decentralized finance (DeFi) at the institutional level
