Ripple and Archax Launch World’s First Tokenized Money Market Fund on XRP Ledger

• Ripple and Archax have launched the world’s first tokenized money market fund on the XRP Ledger, tokenizing Abrdn’s $4.77 billion US dollar Liquidity Fund.
• This milestone aligns with Ripple’s broader strategy to capture a share of the $16 trillion real-world asset market projected by 2030.

Ripple, the entity behind XRP has partnered with Archax, the United Kingdom’s first Financial Conduct Authority (FCA)-regulated cryptocurrency exchange, broker, and custodian, to launch the world’s first tokenized money market fund on the XRP Ledger (XRPL).

This significant initiative has ensured that Abrdn has tokenized its $4.77 billion US dollar Liquidity Fund, a major step in RWA tokenization.

Archax, in collaboration with @Ripple, has launched the first tokenised money market fund on #XRPL.

This groundbreaking initiative brings tokenised access to @abrdn_plc $3.8 billion US dollar Liquidity Fund, paving the way for enhanced operational efficiencies and institutional… pic.twitter.com/9TpXhqBOtz

— Archax (@ArchaxEx) November 25, 2024

Ripple emphasized these benefits in its Nov. 25 announcement, stating that tokenization on XRPL offers unmatched efficiency. Duncan Moir, Abrdn’s senior investment manager, highlighted the transformative impact of moving end-to-end investment and cash settlement processes on-chain, enabling faster and more seamless transactions.

While this collaboration has captured significant attention, Access to the tokenized money market fund will be restricted to professional investors, facilitated through Archax’s tokenization platform. This exclusivity reflects the partnership’s aim to bring institutional-grade investment opportunities to a broader audience while maintaining regulatory compliance.

Additionally, Ripple has showcased great confidence in the future tokenized assets. This was evidenced by the $5 million commitment within Abrdn’s US dollar Liquidity Fund. This move aligns with Ripple’s ambitious plans to capture a significant share of the RWA market, which Boston Consulting Group projects will grow to $16 trillion by 2030.

Notably, the tokenization of money market funds is vastly growing, in fact data has revealed there is over $1 billion assets under management globally. According to Dune Analytics data shared by 21Shares, Blackrock leads the space with BlackRock leads the space with its USD Institutional Digital Liquidity Fund, valued at $443.9 million.

“There is now real momentum building for tokenized real-world assets,” said Graham Rodford, CEO of Archax.

Ripple’s push into this space positions it as a key competitor to Ethereum and Stellar, which have tokenized $3.07 billion and $386.2 million worth of RWAs, respectively.

Beyond money market funds, government securities and commodities are among the most tokenized RWAs, representing $2.28 billion and $1.14 billion, respectively. This expansion underscores the growing demand for blockchain-based asset management solutions.

By enabling Abrdn’s tokenized fund to launch on XRPL, Ripple and Archax have demonstrated the power of blockchain to reshape traditional finance. This milestone signifies the future of tokenized assets, where digital representations of real-world assets can be traded seamlessly. As the RWA market continues to grow, Ripple’s dedication to innovation positions it at the forefront of this exciting evolving era.

Meanwhile, Ripple’s XRP just like the broader cryptocurrency market has undergone significant rally. At the time of writing, XRP which is currently holding the 6th position is exchanging hands with $1.41. Despite this market price representing a 5.21% decline in the daily charts, the asset has undergone a 27.14% and 172.73% surge in the past week and month respectively.

Additionally, XRP’s market cap has undergone a 5.94% decline, currently at the $79.98B.

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