Ripple Labs has launched the first tokenized money market fund on the XRP Ledger (XRPL) platform. The initiativein partnership with Archax and UK asset management firm abrdn, marks significant progress in real-world asset (RWA) tokenization and the expansion of institutional decentralized finance (DeFi) for the XRP ledger ecosystem.
Ripple enters the RWA sector
Archax, recognized as the premiere exchange, broker and custodian of digital assets regulated by the Financial Conduct Authority (FCA), has facilitated access to abrdn’s £3.8 billion liquidity fund (Lux) in a tokenized format on XRPL. The Lux tokenized fund aims to optimize operational costs and settlement processes by leveraging the XRPL infrastructure.
Duncan Moir, senior investment manager at abrdn, commented on the development: “The next evolution of financial market infrastructure will be driven by the broader adoption of digital securities. Real benefits can be achieved by leveraging the efficiency of moving end-to-end investment and cash settlement processes across the chain.”
Ripple has committed $5 million in tokens to abrdn’s Lux fund, part of a broader strategy to invest in RWA assets on XRPL by partnering with various asset managers. Markus Infanger, senior vice president at RippleX, stated: “The arrival of the abrdn money market fund on XRPL demonstrates how real-world assets are being tokenized to increase operational efficiency while continuing to strengthen XRPL as one of the leading real-world blockchains . asset tokenization.”
Graham Rodford, CEO of Archax, highlighted the growing momentum of asset tokenization: “Financial institutions understand the value of adapting digital assets for real-world applications. Today, tokenized real-world assets are gaining real momentum, and Archax is a leader in tokenizing assets such as equities, debt instruments, and money market funds.
The collaboration builds on Archax’s exploit of Ripple’s digital asset custody solutions from 2022. As investor interest in tokenized money market funds on XRPL grows, Ripple Custody leverages its experience with institutional clients to support tokenization, custody, exchange and flow of assets digital .
According to the press release, XRP Ledger’s capabilities provide a solid foundation for RWA tokenization and institutional-grade DeFi applications. Ripple has been using XRPL for over a decade, supporting various financial services such as global payments, digital asset custody, and stablecoin issuance.
Market analysis by McKinsey indicates that tokenized money market funds have exceeded $1 billion in assets under management, and projections suggest that the value of tokenized assets could reach $16 trillion by 2030.
At the time of publication, the price of XRP was $1.47.
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