- Ripple has tokenized asset manager abrdn’s $4.77 billion US dollar Liquidity Fund on XRP Ledger, the first money market fund of its kind on its blockchain.
- The tokenization was made possible through Ripple’s partnership with Archax, the UK’s first FCA-regulated cryptocurrency exchange, broker, and custodian.
- Only professional investors will have access to abrdn’s money market fund on XRPL through Archax’s tokenization platform, and Ripple will allocate $5 million into tokens on the fund.
Ripple, the blockchain payments company, has partnered with Archax, a regulated cryptocurrency exchange and custodian, to launch the first tokenized money market fund on the XRP Ledger. This new tokenized fund comprises asset manager abrdn’s $4.77 billion US Dollar Liquidity Fund.
Details on the New Tokenized Fund
The tokenization of abrdn’s $4.77 billion money market fund on XRPL demonstrates how more real-world assets (RWAs) are moving on-chain to unlock operational cost savings and settlement efficiencies, according to Ripple.
Abrdn’s senior investment manager Duncan Moir said “real benefits” can be realized by leveraging the efficiency of moving the end-to-end investment and cash settlement process on-chain.
Initially, only professional investors will have access to abrdn’s money market fund on XRPL through Archax’s tokenization platform. Ripple will also allocate $5 million into tokens on abrdn’s US Dollar Liquidity Fund.
Ripple’s Broader RWA Strategy
This new tokenized fund is part of Ripple’s broader strategy to capture more of the $16 trillion RWA market that Boston Consulting Group estimates will exist by 2030.
Tokenized money market funds alone currently account for over $1 billion in assets under management, led by the BlackRock USD Institutional Digital Liquidity Fund at $443.9 million.
According to Archax CEO Graham Rodford, “There is now real momentum building for tokenized real-world assets.”
Competition in the RWA Space
Ripple’s biggest competitors in the RWA space are Ethereum and Stellar, which have tokenized $30.7 billion and $3.862 million worth of RWA assets respectively.
Government securities, including money market funds and commodities, are the most tokenized RWAs (not including fiat-collateralized stablecoins) at $22.8 billion and $11.4 billion.
