Journalist
Published:
- Ripple has partnered with Archax to launch the first tokenized money market fund on XRP Ledger.
- Ripple invested $5 million in Abrdn’s Lux Fund to expand the portfolio of tokenized assets on XRPL.
Ripple (XRP) saw a significant price drop of 9% over the past 24 hours. Meanwhile, the company’s latest partnership with Archax is generating considerable attention.
Ripple’s new investment
Ripple has revealed the launch of the first ever tokenized money market fund on the XRP Ledger. This groundbreaking development includes Abrdn’s $4.77 billion US Dollar Liquidity Fund.
As mentioned earlier, this innovative project is the result of Ripple’s collaboration with Archax, the first cryptocurrency exchange, broker and custodian regulated by the UK’s Financial Conduct Authority.
Interestingly, the move comes after a McKinsey report revealed that tokenized money market funds had already surpassed $1 billion in assets under management.
Some forecasts suggest that the total value of tokenized assets could rise to as much as $16 trillion by 2030.
XRP Ledger ready to win?
In light of this growing demand, Ripple has committed $5 million to purchase tokens from Abrdn’s Lux Fund.
Making the same point, Duncan Moir, senior investment director at abrdn, noted:
“There are real benefits to leveraging the efficiency of moving the investment and cash settlement process end-to-end on-chain.”
Markus Infanger, Senior Vice President of RippleX, added to the fray:
“There is no doubt that the blockchain economy is gaining ground.”
The story began in 2022
For those unaware, Archax has been using Ripple’s digital asset custody solutions since 2022, allowing more investors to securely store their tokenized money market fund units on the XRP Ledger (XRPL).
Ripple has used XRPL for over a decade to power a wide range of financial services, including global payments, digital asset custody, and stablecoin issuance.
Graham Rodford, CEO of Archax, said it best when he said:
“There is now real momentum for real-world tokenized assets, and Archax is at the forefront of tokenizing assets such as stocks, debt instruments and money market funds.”
