Ripple Unveils Its First Tokenized Money Market Fund on the XRP Ledger
Ripple Labs has reached a significant milestone with the introduction of its first tokenized money market fund on the XRP Ledger (XRPL).This pioneering endeavor comes in partnership with Archax and the UK asset management firm abrdn, marking a considerable leap in real-world asset (RWA) tokenization and the expansion of institutional decentralized finance (DeFi) within the XRP ecosystem.
Partnership with Archax and abrdn
Archax, the UK’s first regulated digital asset exchange, broker, and custodian as recognized by the Financial Conduct Authority (FCA), is now offering access to abrdn’s £3.8 billion US Dollar Liquidity Fund (Lux) in a tokenized form on the XRPL.This innovative approach aims to enhance operational efficiency while simplifying settlement processes, leveraging the advanced capabilities of the XRPL infrastructure. Duncan Moir, a Senior Investment Manager at abrdn, believes that the rising use of digital securities will reshape the future of financial market infrastructure.
He noted that transitioning investment and cash settlement procedures onto the blockchain could lead to significant efficiency gains. As part of a broader strategy focused on investing in RWAs on the XRPL, Ripple has committed $5 million to tokens associated with abrdn’s Lux fund.
Markus Infanger, Senior Vice President at RippleX, pointed out that this launch signifies the ongoing trend of tokenizing real-world assets, a shift that fosters operational enhancements and reinforces the XRPL’s status as a frontrunner in this domain.
Growing Institutional Interest
Graham Rodford, CEO of Archax, highlighted the increasing interest from financial institutions in digital assets with practical applications.He observed a notable momentum towards tokenizing various asset classes, such as equities, debt instruments, and money market funds. This new initiative builds on Archax’s collaboration with Ripple, which began in 2022 when they started using Ripple’s digital asset custody solutions.
With growing investor enthusiasm for XRPL’s tokenized money market offerings, Ripple Custody is utilizing its expertise with institutional clients to facilitate the entire lifecycle of digital assets—from tokenization and storage to trading and transfer. The press release emphasizes that the XRP Ledger provides a robust framework for RWA tokenization and the development of institutional-grade DeFi applications.
Ripple has been leveraging the XRPL for over a decade to offer a diverse array of financial services, including global payments, digital asset custody, and stablecoin issuance.
Future of Tokenized Assets
Recent market insights from McKinsey reveal that tokenized money market funds now manage assets surpassing $1 billion.Furthermore, projections suggest that the total value of tokenized assets could skyrocket to a remarkable $16 trillion by 2030. As of the most current data, XRP is trading at $1.47. “`html
Source: Bitcoinist.com
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