Ripple and Archax launch inaugural tokenized money market fund on XRP Ledger

Blockchain payments company Ripple has unveiled the first tokenized money market fund on the XRP Ledger, featuring asset manager abrdn’s $4.77 billion US dollar Liquidity Fund. This groundbreaking move was facilitated by Ripple’s collaboration with Archax, the UK’s premier Financial Conduct Authority-regulated cryptocurrency exchange, broker, and custodian, which has access to abrdn’s money market fund.

The tokenization of abrdn’s $4.77 billion money market fund on the XRP Ledger highlights the trend of real-world assets (RWAs) transitioning onto the blockchain to enhance operational efficiencies and cost savings, according to Ripple’s statement on November 25th. Duncan Moir, abrdn’s senior investment manager, emphasized the benefits of utilizing the efficiency of blockchain technology for investment and cash settlement processes.

Access to abrdn’s money market fund on the XRP Ledger through Archax’s tokenization platform is limited to “professional investors,” as specified by Ripple. Additionally, Ripple will invest $5 million into tokens on abrdn’s US dollar Liquidity Fund as part of its broader plans to tap into the estimated $16 trillion market by 2030 predicted by Boston Consulting Group.

Data from Dune Analytics presented by asset manager 21Shares reveals that tokenized money market funds hold over $1 billion in assets under management, with the BlackRock USD Institutional Digital Liquidity Fund leading the way at $443.9 million. Archax’s CEO, Graham Rodford, noted a significant momentum for tokenized real-world assets, suggesting a promising future for this sector.

In the realm of RWA tokenization, Ripple faces competition from Ethereum and Stellar, which have tokenized assets worth $3.07 billion and $386.2 million, respectively. Government securities and commodities top the list as the most tokenized RWAs, excluding fiat-collateralized stablecoins, with $2.28 billion and $1.14 billion in assets.

Recently, Ripple’s XRP token has shown impressive performance, climbing 27.9% to reach $1.43. This positive trend aligns with the growing interest in blockchain technology and its applications across various industries.

As the world witnesses the transformational impact of blockchain technology, particularly in the real estate market, Ripple’s innovative steps in tokenizing money market funds on the XRP Ledger reflect the industry’s evolution towards greater efficiency and transparency.