Ripple Launches First Tokenized Money Market Fund on XRP Ledger

Ripple announced its first tokenized money market fund on Monday, marking a significant step in its collaboration with FCA-regulated Archax and UK-based asset manager abrdn.

This fund, built on the XRP Ledger (XRPL) blockchain, is a part of abrdn’s US Dollar Liquidity Fund (Lux).

The partnership between Ripple and Archax brings tokenization to the forefront of money market investing. Ripple’s statement highlighted that this tokenized fund would help solidify XRPL as a top blockchain for real-world asset (RWA) tokenization and decentralized finance applications.

The global market for tokenized assets is projected to reach $16 trillion by 2030, with Ripple forecasting significant efficiencies in capital markets and settlements through XRPL’s infrastructure.

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Ripple also revealed that it invested $5 million into tokens from abrdn’s Lux fund, as part of a larger plan to allocate capital into RWAs on the XRPL with support from various asset managers. Markus Infanger, Senior Vice President of RippleX, emphasized how this initiative enhances operational efficiencies while reinforcing the XRP Ledger as a leader in tokenized real-world asset management.

This move builds on Ripple’s previous partnership with Archax in June, which aimed to introduce hundreds of millions in tokenized RWAs to XRPL. Ripple CEO Brad Garlinghouse stated that these efforts would further establish XRPL’s prominence in the RWA tokenization space.

Recently, Archax also added funds from State Street, Fidelity International, and Legal & General Investment Management (LGIM) to its tokenized offerings, which will be available on XRPL, Hedera, and Arbitrum blockchains.

Alexander Zdravkov