Ripple has now announced plans to increase the number of token funds through a partnership with Archax, a UK-based digital marketplace regulated by the Financial Conduct Authority (FCA) for real assets.
This comes as XRP, Ripple's native cryptocurrency, has been experiencing an intense bullish trend in the following weeks.
The token was worth $1.09 as of November 20, up more than 50% over the course of a week as a result of the announcement.
*Token Funds: A New Era of Accessibility
Archax has announced the addition of tokenized money market funds (MMFs) from three major financial institutions.
The three major asset managers in the UK are State Street Global Advisors, Fidelity International and Legal & General Investment Management (LGIM).
These funds will initially be sold in the form of tokens based on customers’ share of physical assets held by the platform.
These are State Street's USD/GBP/EUR Liquidity Funds, Fidelity's ILF USD/Sterling/Euro Funds, and LGIM's Sterling/USD/Euro Liquidity Funds.
These tokens are likely to be traded on blockchains including Hedera Hashgraph, XRPL, and Arbitrum. This is expected to lead to the opening of yield-bearing money market funds.
It is generally available to a broad base of investors. This category includes stablecoin holders, fintech companies, as well as institutional players keen on innovative ways to deploy their crypto war chests.
Token funds also have use cases beyond investing in tokenized securities. They can also be used for payments and financial transactions using tokenized funds as collateral.
It is worth noting that Graham Rodford, CEO of Archax, devoted a large part of his speech to the topic of symbolism.
He emphasized how to increase the efficiency of products on behalf of clients and expand the range of financial instruments available.
XRP is up over 50% in a week🚨🚀
Ripple announced this during a time when the price of the XRP token was skyrocketing.
In the past seven days, XRP has risen from $0.72 to $1.09. This represents a significant increase of 50.95%. The current 24-hour trading volume of the token is $6.54 billion.
This price trajectory is likely driven by growing sentiment around Ripple’s move towards tokenization. The emergence of broader institutional investors is another factor.
Many investors see the collaboration with Archax, as well as the launch of the MMF token, as a positive sign for the future use of XRP.
