Ripple, a blockchain company, recently announced its partnership with Archax, a UK-based digital asset exchange, broker, and custodian. Archax introduced a tokenized version of abrdn’s US dollar Liquidity Fund (Lux) on the XRP Ledger (XRPL). This launch marks the first tokenized money market fund available on XRPL, a blockchain platform increasingly recognized for supporting real-world asset (RWA) tokenization and institutional decentralized finance (DeFi).
The fund is part of abrdn’s broader £3.8 billion US dollar liquidity portfolio and stems from a collaboration between Archax and Ripple, a blockchain-focused enterprise solutions provider. Ripple has committed USD $5 million to tokens in the fund, underscoring the potential for blockchain infrastructure to improve cost-efficiency and settlement processes in capital markets.
Tokenized money market funds have already surpassed USD $1 billion in assets under management globally, with McKinsey estimating the broader tokenized asset market could reach $16 trillion by 2030. This highlights a growing institutional interest in blockchain applications for traditional financial instruments.
Duncan Moir, Senior Investment Manager at abrdn, emphasized the benefits of blockchain technology, stating, “The next evolution of financial market infrastructure will come from digital securities. Moving the investment and settlement process on-chain delivers tangible efficiencies, and the XRPL provides the institutional-grade capabilities needed for this transition.”
Ripple’s Senior Vice President of RippleX, Markus Infanger, highlighted the XRPL’s expanding role in asset tokenization, noting, “This development exemplifies how real-world assets are being brought on-chain to streamline processes and reduce costs.
The on-chain economy is evolving rapidly, and Ripple remains committed to supporting financial institutions in leveraging blockchain for utility at scale.”
Archax’s CEO, Graham Rodford, pointed to the momentum behind tokenized RWAs. He remarked, “Tokenization of assets such as equities, debt instruments, and money market funds is gaining traction.
Our work with Ripple enables institutional clients like abrdn to tokenize and offer their assets securely on the XRPL, leveraging our tokenization engine.”
Ripple’s custody solutions, utilized by Archax since 2022, play a pivotal role in enabling secure storage and transfer of tokenized assets. The XRPL’s built-in functionalities – tokenization, trading, and escrow – make it a robust platform for financial institutions adopting digital asset strategies.
As blockchain adoption accelerates, the tokenization of RWAs on platforms like XRPL highlights the financial sector’s shift towards integrating blockchain to enhance operational efficiency and scalability.
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<p>The post Ripple and Archax Introduce Tokenized Money Market Fund on XRPL, Signalling Growing Institutional Interest in Blockchain Applications first appeared on CoinBuzzFeed.</p>
