Ripple has now introduced its first tokenized money market fund on the XRP Ledger, initiating aims to enhance liquidity and provide new investment opportunities.
Ripple and Archax have made a groundbreaking move by launching the UK’s first tokenized money market fund on the XRP Ledger.
This marks a significant advancement in finance through blockchain technology.
Archax, recognized as the first FCA-regulated digital asset exchange, broker, and custodian, has successfully tokenized a money market fund managed by UK asset manager abrdn.
This initiative is part of abrdn’s £3.8 billion US Dollar Liquidity Fund (Lux) and represents the inaugural tokenized money market fund on the XRP Ledger.
Ripple’s collaboration was crucial to this achievement, with the company investing $5 million in tokens associated with abrdn’s Lux fund, reflecting its broader commitment to real-world assets (RWAs).
According to McKinsey, tokenized money market funds currently manage over $1 billion in assets, and the overall market for tokenized assets is expected to reach $16 trillion by 2030.
Indicating a growing interest in blockchain solutions in traditional finance.
Key stakeholders emphasized the importance of this initiative.
Duncan Moir from abrdn noted the increased efficiency and transparency that comes from utilizing the XRPL for investment processes.
Markus Infanger from RippleX highlighted the momentum in the on-chain economy, praising the operational advantages of tokenized RWAs.
Graham Rodford, CEO of Archax, stressed the need for strong tokenization services for institutional clients.
Utilizing Ripple’s custody solutions since 2022, Archax ensures secure tokenization, storage, and exchange of assets, including the money market fund units.
The XRPL’s features, such as tokenization, trading, and escrow, provide a scalable infrastructure for institutional decentralized finance (DeFi) solutions.
This initiative is a major step toward merging blockchain technology with traditional finance, paving the way for greater adoption of tokenized real-world assets and transforming financial institutions’ operations.
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