- Ripple launches UK’s first money market fund tokenization .
- Major milestone for institutional blockchain adoption.
- $5M investment signals Ripple’s RWA commitment
Ripple and Archax have achieved a significant milestone in financial innovation by launching the UK’s first tokenized money market fund on the XRP Ledger (XRPL).
The initiative involves tokenizing a portion of abrdn’s $3.8 billion US Dollar Liquidity Fund (Lux), marking a crucial step toward blockchain integration in traditional finance.
Archax, as the UK’s first FCA-regulated digital asset exchange, has partnered with Ripple to execute this pioneering project. Demonstrating strong commitment to the initiative, Ripple has invested $5 million in tokens linked to abrdn’s Lux fund, aligning with its strategic focus on real-world assets (RWAs).
McKinsey’s analysis indicates that tokenized money market funds currently manage over $1 billion in assets, with the broader tokenized asset market projected to reach $16 trillion by 2030. This growth trajectory underscores increasing institutional demand for blockchain-based financial solutions.
Ripple’s new implementation leverages XRPL
The implementation leverages XRPL’s comprehensive features, including tokenization, trading, and escrow capabilities. Archax has utilized Ripple’s custody solutions since 2022, enabling secure tokenization and storage of fund units. This infrastructure provides a scalable foundation for institutional DeFi applications.
Duncan Moir from abrdn emphasizes the enhanced efficiency and transparency achieved through on-chain investment processes.
Markus Infanger of RippleX notes growing traction in the on-chain economy, while Archax CEO Graham Rodford highlights the importance of robust tokenization services for institutional clients.
This development represents a significant advancement in bridging traditional finance with blockchain technology, potentially catalyzing broader adoption of tokenized real-world assets across the financial sector.
