Ripple has launched a tokenized money market fund with Archax and abrdn on the XRP Ledger (XRPL).
On Monday, Ripple, a cryptocurrency payments company, announced that it will launch its first tokenized money market fund in partnership with Archax, a Financial Conduct Authority (FCA) authorized cryptocurrency exchange, and abrdn, a UK asset management.
The tokenized money market fund will be accessible through the use of blockchain technology, specifically the XRP Ledger (XRPL). As the price of XRP increased by 6% today, traders reacted promptly to the news.
XRP News: Ripple, Archax Announces abrdn Fund Tokenization
Ripple’s press release from November 25th states that Archax has partnered with the asset management firm abrdn in the United Kingdom to expand its tokenized funds offering. Abrdn has developed a tokenized version of a money market fund on the XRP Ledger (XRPL).
The fund is a component of the Liquidity Fund (Lux) by abrdn, which has a total value of £3.8 billion in US dollars. According to Ripple, the XRPL tokenized money market fund is the first product of its kind. Consequently, this will play a significant role in establishing the leading blockchain for tokenization of real-world assets (RWA) and institutional decentralized finance (DeFi).
The company disclosed that analysts anticipate the market for tokenized assets to reach sixteen trillion dollars by the year 2030. Through the deployment of capital markets infrastructure on the XRPL, this crucial milestone will make it possible to realize cost savings and improve settlement efficiencies.Ripple has announced its investment of five million dollars in tokens within the Lux
fund of ABRDN. This is a portion of a larger fund that the business will distribute to RWAs based on the XRPL that is provided by a variety of asset managers. 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,” said Markus Infanger, Senior Vice President of RippleX.
People recognize the XRPL as one of the leading blockchains for representing real-world assets. In June, Archax and Ripple announced a partnership that populated the XRP Ledger (XRPL) with tokenized RWAs worth hundreds of millions of dollars.
The Chief Executive Officer of Ripple, Brad Garlinghouse, stated that it will assist in establishing the XRPL as one of the first blockchains for RWA tokenization.In the past week, Archax has expanded its tokenized RWA offerings to include funds from State Street, Fidelity International, and Legal & General Investment Management (LGIM).
In the beginning, these tokenized funds will be accessible on the blockchains of XRP Ledger (XRPL), Hedera, and Arbitrum. The price of XRP has increased by 6% over the course of the last twenty-four hours, and it is presently trading at $1.49. At the end of the 24 hours period, the low was $1.31, and the high was $1.54.
Furthermore, there has been a minor increase in the trading volume, which indicates that traders are continuing to show interest in the market. More than 250 million coins were purchased by whales over the course of the weekend, which resulted in the total open interest in XRP futures reaching a new all-time high value of $2.60 billion.