Ripple launched the first tokenized money market fund on the XRP Ledger (XRPL) through a partnership with British companies Archax and Abrdn, according to a November 25 release.
The move involves Abrdn managing the fund as part of its £3.8 billion US Dollar Liquidity (Lux) fund. Ripple has committed to investing $5 million in Abrdn’s Lux fund.
The global RWA tokenization market is growing rapidly, with McKinsey forecasting it will surpass $16 trillion by 2030. Tokenized money market funds alone represent over $1 billion in assets under management , which demonstrates the growing institutional interest in blockchain-based solutions.
Duncan Moir, senior investment director at Abrdn, said:
“The next evolution of financial markets infrastructure will be driven by the broader adoption of digital securities. Real benefits are to be gained from the efficiency of moving the investment and cash settlement process end-to-end on-chain.
XRPL Expanding Use Cases
The move highlights XRPL’s growing role in tokenizing real-world assets (RWA). By leveraging XRPL, Ripple aims to reduce operational costs and streamline settlement processes. This development places XRPL alongside leading blockchains like Ethereum and Avalanche in the competitive RWA tokenization landscape.
The XRPL network continues to gain traction among institutional players. Its design facilitates asset tokenization with low transaction costs, scalability and compliance capabilities. These benefits make it an attractive choice for financial institutions exploring blockchain for real-world applications.
Recent developments further confirm this momentum. SG-FORGE, the crypto arm of Société Générale, recently announced plans to expand its EUR stablecoin CoinVertible to XRPL. Similarly, OpenEden expanded its tokenization platform to XRPL after Ripple’s $10 million investment in tokenized US Treasuries.
Thus, the addition of Abrdn’s money market fund reinforces XRPL’s growing reputation in the RWA tokenization market. Markus Infanger, Senior Vice President of RippleX, said:
“There is no doubt that the on-chain economy is gaining momentum and (XRPL) is excited to seize the incredible opportunity presented by blockchain and digital asset technology to deliver public services at scale.”
