Ripple Launches Tokenized Money Market Fund on XRP Ledger

Ripple Labs has made a significant move by introducing the first tokenized money market fund on the XRP Ledger (XRPL). In collaboration with Archax and UK-based asset manager abrdn, this initiative marks a notable advancement in the tokenization of real-world assets (RWA) and the expansion of institutional decentralized finance (DeFi) in the XRP ledger ecosystem.

Archax, known as the first Financial Conduct Authority (FCA) regulated digital asset exchange, broker, and custodian, has enabled access to abrdn’s £3.8 billion US dollar Liquidity Fund (Lux) in a tokenized format on the XRPL. By tokenizing the Lux fund, the aim is to enhance operational efficiency and streamline settlement processes using the XRPL’s infrastructure.

Duncan Moir, Senior Investment Manager at abrdn, shared his thoughts on the development, stating, “The next evolution of financial market infrastructure will be driven by the broader adoption of digital securities. Real benefits are to be had from leveraging the efficiency of moving the end-to-end investment and cash settlement process on-chain.”

Ripple has invested $5 million in tokens within abrdn’s Lux fund as part of its strategy to invest in RWAs on the XRPL through partnerships with different asset managers. Markus Infanger, Senior Vice President at RippleX, emphasized that “The arrival of abrdn’s money market fund on XRPL demonstrates how real-world assets are being tokenized to enhance operational efficiencies, while further reinforcing the XRPL as one of the leading blockchains for real-world asset tokenization.”

Graham Rodford, CEO of Archax, noted the growing momentum in asset tokenization, stating, “Financial institutions are understanding the value of adopting digital assets for real world use cases. There is now real momentum building for tokenized real-world assets, and Archax is at the forefront of tokenizing assets such as equities, debt instruments, and money market funds.”

Overall, this partnership between Ripple Labs, Archax, and abrdn marks a significant step forward in the tokenization of real-world assets and the advancement of DeFi on the XRP Ledger. The move showcases the growing interest in leveraging blockchain technology for institutional finance and paves the way for further innovation in the space.