Ripple and Archax Launch Tokenized Money Market Fund
Global blockchain payments leader Ripple has teamed up with Archax, the first UK-based crypto exchange regulated by the Financial Conduct Authority, to create the first tokenized money market fund on the XRP Ledger. This unprecedented move tokenizes Abrdn’s $4.77 billion US dollar Liquidity Fund, a serious step toward connecting traditional finance with the world of blockchain.
Ripple and Archax forge a strategic partnership.
Ripple’s collaboration with Archax allows the access of Abrdn’s Liquidity Fund to professional investors through a regulated tokenization platform. Given the expertise of Archax in the management of tokenized assets, this will further Ripple’s mission of bringing RWAs on-chain. The initiative gives an investment offering greater efficiency by leveraging the robust infrastructure of the XRP Ledger for seamless end-to-end cash settlement.
Unlocking Blockchain Benefits
Ripple focused on the operational and cost-saving benefits of tokenization. Duncan Moir, Abrdn’s senior investment manager, added that putting investments and settlements on-chain greatly enhances efficiency without sacrificing transparency and security. This launch underlines Ripple’s commitment to extend blockchain’s role in transforming asset management.
A Vision for a $16 Trillion Market
This puts Ripple squarely in the crosshairs of the fast-growing RWA market, which Boston Consulting Group estimates will reach $16 trillion by 2030. Today, tokenized money market funds have more than $1 billion in assets under management. Ripple is positioning itself to take advantage of this increasing market share and to go head-to-head with industry giant BlackRock.
Competitive Advantage of Ripple
Ethereum dominance hovers at $3.07 billion, followed by Stellar with $386.2 million. Ripple is not in the race to up the ante in the tokenized RWA space. Focusing on tokenized government securities and commodities, Ripple is trying hard to excel in the tokenization ecosystem.
Ripple’s Market Surge
XRP, the native token of Ripple, surged 27.9% in the last week to $1.43. This is indicative of market confidence in Ripple’s continuous innovations and its leading a blockchain initiative in finance.
This milestone further strengthens Ripple’s position in the leadership of blockchain-based finance, and this will pave the way for wider adoption in both tokenized assets and real-world asset integration.
