Archax adds access to Abrdn Money Market Fund on the XRP Ledger in partnership
Archax, the first FCA regulated digital asset exchange, broker, and custodian, has made strides in providing access to a money market fund from UK asset manager abrdn in tokenized form on the XRP Ledger (XRPL). This collaboration marks a significant milestone as the fund represents the first tokenized money market fund on the XRPL, solidifying its position as a leading blockchain for real-world asset (RWA) tokenization and institutional decentralized finance (DeFi).
This achievement is a result of the ongoing partnership between Archax and Ripple, a key player in enterprise blockchain and crypto solutions. The collaboration aims to unlock operational cost savings and settlement efficiencies by leveraging capital markets infrastructure on the XRPL.
Tokenized money market funds are already managing over USD$1 billion in assets, and experts project that the value of tokenized assets could skyrocket to $16 trillion by 2030, indicating a strong market demand.
Ripple has committed to allocating USD$5 million into tokens on abrdn’s Lux fund as part of a larger fund intended for RWAs on the XRPL from various asset managers.
Duncan Moir, Senior Investment Manager at abrdn, emphasized the potential benefits of moving the investment and cash settlement process on-chain for enhanced efficiency. The XRPL’s institutional-grade functionality, cost efficiency, and compliance capabilities make it an attractive venue for such operations.
Markus Infanger, Senior Vice President at RippleX, underlined the importance of tokenizing real-world assets to drive operational efficiencies and solidify the XRPL’s position as a blockchain for real-world asset tokenization. The shift towards the on-chain economy is gaining momentum, opening up significant opportunities for financial institutions to leverage blockchain and digital assets technology to scale their operations effectively.
Graham Rodford, CEO of Archax, highlighted the growing momentum for tokenized real-world assets and Archax’s role in tokenizing assets like equities, debt instruments, and money market funds. Through collaboration with Ripple, Archax aims to assist clients like abrdn in bringing their assets to the XRPL using Archax’s tokenization engine. Institutional buyers can now acquire abrdn’s Lux fund directly from Archax in token form.
Archax has been utilizing Ripple’s digital assets custody solutions since 2022. As more investors hold their tokenized money market fund units on the XRPL, Ripple Custody draws on its extensive experience working with top-tier institutional clients and regulatory standards to provide secure custody solutions.
