Ripple, a blockchain company, has recently experienced a rapid recovery following a victory in the SEC case. Archax, a UK-based digital asset exchange, broker, and custodian regulated by the FCA, has introduced a tokenized version of abrdn’s US dollar Liquidity Fund (Lux) on the XRP Ledger (XRPL). This marks the first tokenized money market fund available on XRPL, which is gaining recognition for supporting real-world asset (RWA) tokenization and institutional decentralized finance (DeFi).
The announcement of the money fund led to a 10% increase in the XRP price, which is currently trading at $1.5. Ripple’s collaboration with Archax and abrdn demonstrates the potential for blockchain infrastructure to improve cost-efficiency and settlement processes in capital markets. Tokenized money market funds have surpassed USD $1 billion in assets under management globally, with McKinsey estimating the broader tokenized asset market could reach $16 trillion by 2030.
This growing institutional interest in blockchain applications for traditional financial instruments highlights the potential benefits of using digital securities. Duncan Moir, Senior Investment Manager at abrdn, emphasized the advantages 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, remarking, “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, such as 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 Innovative Tokenized Money Market Fund Launch on XRPL Signals Growing Institutional Support for Blockchain in Traditional Finance first appeared on CoinBuzzFeed.</p>
