Ripple Unveils Tokenized Money Market Fund on XRP Ledger

Ripple has announced the launch of a tokenized money market fund on the XRP Ledger (XRPL).

This initiative is built in collaboration with UK-based digital asset exchange, broker, and custodian, Acrhax, which provides access to a money market fund from UK asset manager abrdn.

Archax has utilized Ripple's digital asset custody solutions since 2022. Ripple Custody leverages its extensive experience with top-tier institutional clients and regulated entities to facilitate the tokenization, secure storage, exchange, and transfer of assets.

The fund operates as a tokenized portion of abrdn's $3.8 billion US Dollar Liquidity Fund (Lux) and represents the first money market fund on the XRPL.

Tokenized money market funds exceed $1 billion in AUM with projections estimating the value of tokenized assets reaching $16 trillion by 2030.

Ripple will allocate USD$5 million into tokens on abrdn’s Lux fund, representing part of a larger fund that Ripple will allocate to RWAs on the XRPL.

"The arrival of abrdn’s money market fund on XRPL demonstrates how real-world assets are being tokenized to enhance operational efficiencies, while further reinforcing the XRPL as one of the leading blockchains for real-world asset tokenization," said Markus Infanger, Senior Vice President, RippleX.

"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.”

Last week, XRP reached its highest price since May 2021 on the back of SEC Chair Gary Gensler's impending departure. Open interest in XRP futures reached also an all-time high, with over 2 billion tokens in active futures positions, reflecting a strong appetite for XRP volatility and suggesting further price moments are being anticipated.