Ripple launches first tokenized money market fund on XRP ledger through UK partnership

Ripple has launched the first tokenized money market fund on the XRP Ledger (XRPL) through a partnership with UK-based firms Archax and Abrdn, according to a Nov. 25 statement.

This initiative involves Abrdn managing the fund as part of its £3.8 billion US Dollar Liquidity Fund (Lux). Ripple has committed to investing $5 million in Abrdn’s Lux fund.

The global RWA tokenization market is witnessing rapid growth, with McKinsey projecting it to exceed $16 trillion by 2030. Tokenized money market funds alone account for over $1 billion in assets under management, showcasing the growing institutional interest in blockchain-based solutions.

Duncan Moir, Senior Investment Manager at Abrdn, stated:

“The next evolution of financial market infrastructure will be driven by the broader adoption of digital securities. Real benefits are to be had from leveraging the efficiency of moving the end-to-end investment and cash settlement process on-chain.”

XRPL’s expanding use cases

This move highlights XRPL’s growing role in tokenizing real-world assets (RWAs). By leveraging the XRPL, Ripple aims to reduce operational costs and streamline settlement processes. This development places XRPL alongside major blockchains like Ethereum and Avalanche in the competitive RWA tokenization landscape.

The XRPL network continues to gain traction among institutional players. Its design facilitates asset tokenization with low transaction costs, scalability, and compliance capabilities. These advantages make it an attractive choice for financial institutions exploring blockchain for real-world applications.

Recent developments further validate this momentum. Societe Generale’s crypto arm, SG-FORGE, recently announced plans to extend its EUR CoinVertible stablecoin to XRPL. Similarly, OpenEden expanded its tokenization platform to XRPL after Ripple’s $10 million investment in tokenized US Treasury bills.

So, adding Abrdn’s money market fund reinforces XRPL’s growing reputation in the RWA tokenization market. Markus Infanger, Senior Vice President at RippleX, said:

“There is no question that the on-chain economy is gaining traction and [XRPL] is excited to seize the incredible opportunity represented by blockchain and digital assets technology to deliver utility at scale.”

Mentioned in this article