The initiative marks another milestone for Ripple as a financial solution
Ripple has introduced a groundbreaking development in the blockchain and financial sectors by launching the first tokenized money market fund on the XRP Ledger. This initiative features asset manager Abrdn’s $4.77 billion US Dollar Liquidity Fund, marking a significant step in bringing real-world assets (RWAs) on-chain.
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
The project is a result of Ripple’s partnership with Archax, the UK’s first Financial Conduct Authority-regulated cryptocurrency exchange and custodian. Archax’s platform provides access to Abrdn’s money market fund, allowing professional investors to participate through tokenization. Ripple has also committed $5 million to tokens linked to this fund, further solidifying its investment in the RWA ecosystem.
Tokenization enables traditional assets to leverage blockchain’s efficiency for processes like settlement and cash management. Duncan Moir, senior investment manager at Abrdn, highlighted the operational benefits of moving investment activities onto a blockchain-based system, emphasizing improved efficiency and cost savings.
This initiative aligns with Ripple’s strategy to expand its presence in the rapidly growing RWA market. Industry projections from Boston Consulting Group estimate this market will reach $16 trillion by 2030. Ripple joins competitors like Ethereum and Stellar in pursuing tokenized assets, with Ethereum currently leading at $3.07 billion worth of RWA tokenizations compared to Stellar’s $386.2 million.
Tokenized money market funds are emerging as a key segment, already exceeding $1 billion in assets under management. These include prominent players like BlackRock’s USD Institutional Digital Liquidity Fund, valued at $443.9 million. Government securities and commodities represent the most popular categories of tokenized RWAs, excluding stablecoins, with a combined value exceeding $3 billion.
Ripple’s XRP token has also gained momentum, rising 27.9% over the past week to $1.43, reflecting strong investor confidence as the company accelerates its push into the RWA space.
