Ripple has partnered with Archax, a digital asset exchange, broker, and custodian regulated by the United Kingdom’s Financial Conduct Authority (FCA), to provide access to a money market fund from the UK asset manager abrdn on the XRP Ledger (XRPL).
The latest move represents a significant step in unlocking operational cost savings and improving settlement efficiencies through capital markets infrastructure on the XRP Ledger. The milestone also comes from a continued partnership between Archax and Ripple.
Since 2022, Archax has been utilizing Ripple’s digital asset custody solutions. As more investors store their tokenized money market fund units on the XRP Ledger, Ripple Custody is leveraging its extensive experience with leading institutional clients and regulated entities to facilitate the tokenization, storage, exchange, and transfer of value.
Ripple Plans to Invest $5M in Tokens
According to an official report, Ripple plans to invest $5 million in tokens from abrdn’s Lux fund. This investment is part of a broader initiative where Ripple will allocate funds to real-world assets (RWAs) on the XRP Ledger in collaboration with various asset managers.
The launch of abrdn’s money market fund on the XRP Ledger showcases the tokenization of real-world assets to improve operational efficiencies and solidify the XRPL as a top blockchain for real-world asset tokenization.
Over $1B in Tokenized Money Market Funds
The report also noted that tokenized money market funds have already surpassed $1 billion in assets under management, with some forecasts predicting that the value of tokenized assets could soar to $16 trillion by 2030, highlighting a growing demand in the market.
Commenting on the latest move, Duncan Moir, Senior Investment Manager, abrdn, said:
“The next evolution of financial market infrastructure will be driven by the broader adoption of digital securities, real benefits are to be had from leveraging the efficiency of moving the end-to-end investment and cash settlement process on-chain.”
Moir added that the XRP Ledger is a proven platform, offering institutional-grade features, cost-effectiveness, and integrated compliance capabilities. The executive stated that Ripple and Archax’s collaboration will achieve a significant milestone.
“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.
