Ripple and Archax Launch First-Ever Tokenized Money Market Fund on XRP Ledger

• Ripple introduces a $5M tokenized fund with abrdn on XRPL, streamlining institutional finance with blockchain efficiency.
• Archax and Ripple strengthen ties, expanding tokenized RWA offerings and transforming traditional assets into blockchain-based solutions.
• Tokenized assets market could hit $16T by 2030, with XRPL positioned as a key player in institutional-grade asset tokenization.

Ripple has introduced the first tokenized money market fund on the XRP Ledger (XRPL), in partnership with FCA-regulated crypto exchange Archax and UK asset manager abrdn. This initiative, announced on Monday, is a significant move in blockchain-based real-world asset (RWA) tokenization. 

The fund, part of abrdn’s £3.8 billion US dollar Liquidity Fund (Lux), is designed to enhance operational efficiencies through blockchain technology. Ripple has allocated $5 million into tokens on the fund, signaling further efforts to solidify the XRPL’s position in institutional decentralized finance (DeFi).

Archax Expands Tokenized Funds With abrdn

Archax, the first FCA-regulated digital asset exchange, has collaborated with Ripple to tokenize abrdn’s money market fund on the XRPL. The fund represents a segment of abrdn’s extensive liquidity fund portfolio, emphasizing XRPL’s scalability and compliance capabilities. Ripple stated that the introduction of this fund shows its ability to meet institutional-grade needs while streamlining investment and settlement processes.

This partnership follows the June agreement between Ripple and Archax to tokenize hundreds of millions in RWAs on the XRPL. Both entities have committed to advancing financial infrastructure by deploying capital markets operations on blockchain, reducing costs, and enhancing transaction efficiency.

Tokenized Assets Market Set for Rapid Growth

Ripple revealed projections indicating the tokenized asset market could reach $16 trillion by 2030. This aligns with growing institutional interest in blockchain-based solutions for operational cost savings and settlement efficiencies. McKinsey estimates tokenized money market funds already exceed $1 billion in assets under management.

Markus Infanger, RippleX Senior Vice President, noted the transformative impact of tokenization on financial operations. Similarly, abrdn’s Senior Investment Manager Duncan Moir emphasized the potential of blockchain to drive efficiency in cash settlement processes.

Institutional Collaboration Drives Blockchain Integration

Ripple and Archax continue to attract institutional partners seeking blockchain integration. Archax CEO Graham Rodford expressed enthusiasm for tokenizing assets, including equities and debt instruments, with Ripple’s support. This initiative enables institutional buyers to access abrdn’s fund in tokenized form, simplifying purchase and custody on the XRPL.