Ripple [XRP] has witnessed a notable decrease of 9% in its price within the last 24 hours. However, the recent collaboration between Ripple and Archax has attracted considerable attention.
Ripple’s Fresh Venture
An exciting unveiling by Ripple includes the introduction of the pioneering tokenized money market fund on the XRP Ledger. This groundbreaking initiative showcases Abrdn’s $4.77 billion US Dollar Liquidity Fund.
This unique project is the outcome of Ripple’s partnership with Archax, the very first Financial Conduct Authority-regulated cryptocurrency exchange, broker, and custodian in the United Kingdom.
Significantly, this advancement follows a McKinsey report indicating that assets managed in tokenized money market funds have already exceeded $1 billion.
Projections indicate that the total value of tokenized assets could surge to $16 trillion by 2030.
Potential for XRP Ledger
To meet the rising demand, Ripple has devoted $5 million to purchase tokens from Abrdn’s Lux Fund.
Duncan Moir, Senior Investment Manager at abrdn, highlighted the benefits of streamlining the investment and cash settlement process through on-chain efficiency.
Markus Infanger, Senior Vice President at RippleX, emphasized the growing traction of the on-chain economy.
The Journey Commenced in 2022
Since 2022, Archax has been leveraging Ripple’s digital asset custody solutions to allow more investors to securely store their tokenized money market fund units on the XRP Ledger (XRPL).
Ripple has been utilizing the XRPL for over a decade for various financial services such as global payments, digital asset custody, and stablecoin issuance.
Graham Rodford, CEO of Archax, underscored the momentum building around tokenized real-world assets, positioning Archax as a pioneer in tokenizing assets like equities, debt instruments, and money market funds.