The post Ripple and Archax Introduce First-Ever Tokenized Money Market Fund on the XRP Ledger appeared on BitcoinEthereumNews.com.

Ripple has announced teaming up with Archax, a UK-based FCA-regulated digital asset exchange, to launch a tokenized money market fund on the XRP Ledger (XRPL). The fund, managed by UK asset manager abrdn, is part of its £3.8 billion US Dollar Liquidity Fund (Lux). This move marks the first instance of a tokenized money market fund being deployed on the XRPL blockchain. First Tokenized Money Market Fund on XRPL According to the official press release, Ripple plans to tap the growing potential of tokenized finance, as highlighted by McKinsey’s data, which estimates over $1 billion in assets under management for tokenized money market funds and projects the total value of tokenized assets to reach $16 trillion by 2030. As part of the latest collaboration, Ripple has allocated $5 million to tokens linked to the abrdn Lux fund. This allocation forms part of the company’s broader strategy to invest in RWA projects using the XRPL and to encourage institutional adoption of blockchain technology. Commenting on the development, Markus Infanger, Senior Vice President, RippleX said, “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.” Ripple and Archax expanded their collaboration in June, aiming to bring hundreds of millions of dollars in tokenized RWAs onto the XRPL. The main objective behind leveraging the blockchain is to achieve cost reductions and operational improvements within capital markets. Advancing RWA Tokenization The XRPL is an open-source, decentralized blockchain that serves as the underlying technology for XRP. Ripple’s work with Archax reflects a growing emphasis on using the XRPL for tokenizing traditional financial instruments. This approach aligns with Ripple unveiling plans for OpenEden to tokenize US Treasury bills (T-bills) on the…

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Filed under: News - @ November 27, 2024 1:19 am