Ripple Partners UK Firm Archax to Launch First Tokenized Money Market Fund on XRPL

The blockchain infrastructure and crypto solutions provider Ripple is collaborating with the United Kingdom-based digital asset exchange Archax to launch a tokenized money market fund from the asset management company abrdn on the decentralized blockchain XRP Ledger (XRPL).

According to a press release, the tokenized money market fund, a part of the United Kingdom-based abrdn’s £3.8 billion ($4.7 billion) U.S. dollar Liquidity Fund (Lux), is the first of its kind of the XRPL.

“There is no question that the on-chain economy is gaining traction. By working with companies like Archax, we are excited to help financial institutions like abrdn to seize the incredible opportunity represented by blockchain and digital assets technology to deliver utility at scale,” said Markus Infanger, senior vice president of RippleX, an entity that provides XRPL developers with tools and support programs.

Ripple Unveils XRPL’s First Tokenized RWA

The latest development is a product of Ripple’s ongoing partnership with Archax, and Ripple plans to allocate $5 million in tokens to support the tokenized market fund on the XRPL. The blockchain solutions provider intends to take similar actions to support subsequent real-world assets (RWAs) launched on the XRPL by other asset management firms.

Archax has been using Ripple’s services since 2022. However, in June 2024, the firms announced they were expanding their partnership to include the tokenization of RWAs on the XRPL.

The crypto exchange’s CEO, Graham Rodford, said:

“Financial institutions are understanding the value of adopting digital assets for real-world use cases. There is now real momentum building for tokenized real-world assets, and Archax is at the forefront of tokenizing assets such as equities, debt instruments, and money market funds.”

Tokenized RWAs to Hit $16T By 2030

Ripple said the launch of Lux on XRPL is part of efforts to enhance operational cost savings and settlement efficiencies by deploying capital markets infrastructure on the blockchain network. XRPL already offers tokenization and escrow services, allowing the movement of assets in real time; hence, the latest feat gives room for the development of institutional-grade decentralized finance on the network.

With the tokenized money market funds sector having surpassed $1 billion in assets under management, analysts have predicted that the value of such assets could skyrocket to $16 trillion by 2030 amid strong demand. abrdn’s senior investment manager, Duncan Moir, concurs with this forecast and emphasizes the benefit of processing cash settlements on-chain.