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Blockchain payments firm Ripple has announced the launch of the first tokenized money market fund on the XRP Ledger, comprising asset manager Abrdn’s $4.77 billion (3.8 billion British pounds) US dollar Liquidity Fund.
It was made possible through Ripple’s partnership with Archax, the United Kingdom’s first Financial Conduct Authority-regulated cryptocurrency exchange, broker and custodian, which has access to <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/how-rwa-unlocks-new-opportunities-in-the-700b-reinsurance-market" rel="null" target="null" text="null" title="null">Abrdn’s money market fund.</a>
The tokenization of abrdn’s $4.77 billion money market fund on XRPL demonstrates how more <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/articles/tokenized-real-world-assets-rwa-in-defi" rel="null" target="null" text="null" title="null">real-world assets</a> (RWAs) are moving on onchain to unlock operational cost savings and settlement efficiencies, Ripple <a data-ct-non-breakable="null" href="https://ripple.com/ripple-press/archax-provides-access-to-abrdn-money-market-fund-on-the-xrp-ledger-in-collaboration-with-ripple/?utm_campaign=&amp;utm_medium=organic_social&amp;utm_source=twitter" rel="null" target="null" text="null" title="null">said</a> in a Nov. 25 statement.
Abrdn’s senior investment manager, Duncan Moir, said: “Real benefits are to be had from leveraging the efficiency of moving the end-to-end investment and cash settlement process on-chain.”
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 <img alt="Ripple, XRP, Digital Asset Management, Tokenization" src="https://s3.cointelegraph.com/uploads/2024-11/01936570-61aa-7ed9-81d9-b36fba278351" title="">
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 Source: <a data-ct-non-breakable="null" href="https://x.com/ArchaxEx/status/1861003054331437338" rel="null" target="null" text="null" title="https://x.com/ArchaxEx/status/1861003054331437338">Archax</a>
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Only “professional investors” will have access to abrdn’s money market fund on XRPL through Archax’s tokenization platform, Ripple said.
Ripple will also allocate $5 million into tokens on Abrdn’s US dollar Liquidity Fund.
It’s all part of Ripple’s RWA plans to capture more of what Boston Consulting Group estimates will become a <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/tokenization-of-illiquid-assets-to-reach-16t-by-2030-report" rel="null" target="null" text="null" title="null">$16 trillion market</a> by 2030.
Tokenized money market funds alone account for over $1 billion in assets under management, led by the BlackRock USD Institutional Digital Liquidity Fund at $443.9 million, <a data-ct-non-breakable="null" href="https://dune.com/21co/tokenization-government-securities" rel="null" target="null" text="null" title="null">according</a> to&nbsp;Dune Analytics data shared by asset manager 21Shares.
“There is now real momentum building for tokenized real-world assets,” explained Archax’s CEO Graham Rodford.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/rwa-tokenization-sector-50x-growth-2030-report" rel="null" target="null" text="null" title="null">RWA tokenization sector could see 50x growth by 2030: Report</a>
Ripple’s biggest competitors in the RWA space are Ethereum and Stellar, which have tokenized $3.07 billion and $386.2 million worth of RWA assets, Dune Analytics <a data-ct-non-breakable="null" href="https://dune.com/21co/tokenization-overview" rel="null" target="null" text="null" title="null">data</a> from 21Shares shows.
Government securities (which include money market funds) and commodities are the <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/a-brief-history-of-real-world-assets-why-they-matter" rel="null" target="null" text="null" title="null">most tokenized RWAs</a> (not including fiat-collateralized stablecoins) at $2.28 billion and $1.14 billion.
Meanwhile, Ripple’s XRP (<a data-ct-non-breakable="null" href="https://cointelegraph.com/xrp-price-index" rel="null" target="null" text="null" title="null">XRP</a>) token has been one of the market’s best performers over the last week, up 27.9% to $1.43.
Magazine:<a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/block-by-block-blockchain-technology-transforming-real-estate-market/" rel="null" target="null" text="null" title="null"> Block by block: Blockchain technology is transforming the real estate market</a>

Ripple, Archax debut first tokenized money market fund on XRP Ledger

Cointelegraph

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