Leading blockchain protocol Ripple has teamed up with Archax and arbdn to launch the first tokenized money market fund on the XRP Ledger (XRPL). In a blog post, Ripple confirmed the new milestone, stressing that the fund comprises a portion of abrdn’s £3.8 billion US dollar Liquidity Fund. This feat, according to the crypto solution provider, marks a significant step towards activating operational cost savings and improving the efficiency with settlement.
Archax, a renowned digital exchange and broker will provide access to the market fund through its deployment of capital market infrastructure to the XRP Ledger (XRPL). Ripple says this important development further solidifies its market position as one of the leading blockchains for real-world asset tokenization and decentralized finance. According to reports, the valuation of the tokenized money market has surpassed $1 billion in assets under management. With the current market demand, experts have also predicted that the value of tokenized assets might reach $16 trillion before 2030.
Ripple to inject $5 million into abrdn Lux Fund
To unlock the market’s full potential, Ripple plans to inject $5 million into tokens on abrdn’s Lux fund. This strategic allocation is just one among a host of funds that the firm plans to allocate to real-world assets running on the XRPL soluton.
Sharing more insights into the development is Duncan Moir – a senior investment manager at abrdn. Moir says the next evolution of financial market will be underpinned by mainstream adoption of digital securities. Moir added that the real benefits come from harnessing the efficiency of moving “the end-to-end investment and cash settlement process on-chain.”
The renowned manager describes XRPL as a well-established avenue to enhance the performance of RWAs. He also lauded its enterprise-grade features, cost effectiveness, and compliance mechanism.
Similarly, the senior vice president of RippleX Markus Infanger also made some comments. Infanger sees the integration of abrdn’s money market fund as a demonstration of how RWAs are tokenized to improve operational efficiencies. He added that the move further reinforces the XRPL as a top blockchain for real-world asset tokenization.
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